Tuesday, March 10, 2009

Negative Growth In World Trade Led Drop In Indian Export - March 10, 2009

India reported its first year-over-year decline in exports due to negative growth in world trade in the last quarter of 2008. This fall in world trade raised fears of a protectionist reaction, according to a new World Bank report.

Worsening growth in global trade is in progress for some time, said the bank in a paper for next Saturday''s meeting of the Group of 20 finance ministers and central bank’s governors. Making a note that of the 51 economies reporting fourth quarter data for 2008, 36 show double-digit declines in nominal exports relative to a year ago, the paper said many European countries, including the United Kingdom and Spain, as well as developing countries registered a drop in exports of 20 percent or more.

In October, India registered its first every year-over-year decline in exports (of 15 percent), following growth of 35 percent in the previous five months.

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