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09.04.2020 6 INTERNATIONAL NEWS THE World Trade Organisation (WTO) yesterday forecast that the goods trade would shrink more steeply this year than in the global financial crisis a dec- ade ago before rebounding in 2021, as the COVID-19 pandemic recedes – provided countries worked together to confront the challenge. e pandemic could provoke the deepest recession in living memory, WTO chief Roberto Azevedo warned. "As we face what may well be the deep- est economic recession or downturn of our lifetimes, we should aim to make the most of all potential drivers of sustainable growth to reverse this situation," he told a virtual news conference in Geneva. e WTO said global trade would fall this year by between 13% and 32%, giv- ing a wide range because so much about the economic impact of the health crisis was uncertain. "ese numbers are ugly – there is no getting around that," Azevedo said. "But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects." Keeping markets open and predicta- ble, he said, would be critical to spur- ring renewed investment. Countries working together would see a faster re- covery than if each country acted alone. e Geneva-based WTO said that for 2021 it was forecasting a rebound in the global goods trade of between 21% and 24%, depending largely on the duration of the coronavirus outbreak and the ef- fectiveness of policy in response. e WTO also confirmed that 2019 had ended on a sombre note, with a 0.1% decline in goods trade, weighed down by trade tensions, notably be- tween the United States and China, and an economic slowdown. In October, the WTO forecast trade growth would grow 2.7% in 2020 after expanding 1.2% in 2019. It said that this year, nearly all regions would suffer double-digit percentage declines in trade, with exports from North America and Asia the hardest hit. Sectors with complex value chains, such as electronics and automotive products, would also see steeper falls. Services are not included in the WTO's forecast, but the WTO said trade in this area may be hit hardest by COVID-19 because of transport and travel restrictions. WTO says pandemic to provoke deepest recession in 'living memory' Hundreds of shipping containers are seen stacked at a pier at the Port of New York and New Jersey in Elizabeth, New Jersey THE euro wobbled yesterday as the Eu- rogroup failed to reach a consensus on a coronavirus package. e ministers, who deliberated for 16 hours, failed to reach a deal on how to help companies and households. Some countries, like Netherlands wanted any rescue package to come with conditions. is was re- jected by countries like Italy and Spain that are the epicentre of the epidemic. European stocks declined yesterday, ending a two-day rally that had brought optimism in the financial market. In Germany, the DAX declined by more than 1% while in France, the CAC 40 in- dex declined by more than 1.7%. In the UK, the FTSE 100 declined by more than 1% after Tesco reported bet- ter-than-expected results. e biggest retailer in the UK was however hurt by high costs since it was forced to hire more people. In Germany, the biggest news was that Lufthansa had decided to do away with Germanwings, the company it bought in bankruptcy. e company is also re- viewing its operations in Austria and Belgium. In the United States, the main indices were up by less than 50 basis points. e price of crude oil was little changed as the market continued to wait for the OPEC+ meeting that is scheduled for today. e meeting, which was origi- nally scheduled to happen on Monday, will seek to address the current over- supply in the oil market. Saudi Arabia and Russia have been talking behind the scenes and there are hopes of a deal being reached. A deal to cut production could boost prices in the immediate term. However, in the near term, the price could decline if demand remains at the current levels. EUR/USD e EUR/USD pair wobbled as the market reacted to news on Eurogroup problems. e market is also waiting for minutes from the Fed meeting. e pair traded at 1.0867, which is slightly below yesterday's high of 1.0927. It is slightly above the day's low of 1.0830. e pair consolidated between the 14- day and 28-day triple exponential mov- ing average. e RSI has fallen from the over- bought level of 78 to the current 50. e pair could see some significant move- ments ahead of the FOMC minutes. European stocks fall as eurogroup fail to reach a funding deal A screen shows a graph with the evolution of the Ibex 35 on the Stock Exchange, in MadridEFE

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