you're reading...

Growth in volume of world trade and real GDP

Growth in volume of world trade and real GDP

Since trade growth has exceeded output growth, the trade/GDP ratio changes. The trade share of GDP increased steadily from the 1960s until 2009. The 2008 financial crisis (triggered by the collapse of Lehman Brothers in September 2008) impacted the real economy. Global activity contracted in 2009, and thereafter struggled to return to post-crisis levels. Due to the downturn in the global economy, there is less international trade, however it is interesting to observe that the trade/GDP ratio also contracted (figures 3, 4 and 5), recovered shortly thereafter, and again began to contract. It is not immediately evident why this has happened, and whether this indicates more fundamental changes in international trade patterns.

« Previous Next »

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: