Global trade recovery to continue in 2021
Global trade is expected to grow 7-9% in 2021, following a 9% contraction in 2020, Moody's said in a report, while highlighting that its volume will not reach the pre-pandemic levels before 2022.
The report said that continued vaccination rollout and policy measures will support the economic recovery, boosting manufacturing activity and trade flows. But the risk of new virus variants, a resurgence of infections and new restrictions persist.
The rating agency warned that geopolitical tensions, new sanctions and export controls, and domestic policy focus will complicate trade negotiations.
Supply-chain considerations will drive shifts in business strategies in strategic sectors, it noted.
While coronavirusdriven supply chain disruptions will subside as the global economy recovers, governments' "buy national" strategies will add to disruptions in supply chains for medical supplies and strategic sectors.
"Companies will focus on multi-supplier, multisource and reshoring strategies," it explained. Tokyo stocks trimmed earlier gains but managed to end in positive territory on Friday as investors awaited US jobs data due later in the day. The benchmark Nikkei 225 index added 0.09 percent or 26.45 points to 29,357.82, while the broader Topix index firmed 0.29 percent or 5.65 points at 1,933.05.
The Nikkei racked healthy gains in morning trade, lifted by rallies on Wall Street that encouraged bargain hunters despite a lack of fresh cues.
But buyers began to slow down in the afternoon session, with many choosing to refrain from making big bets ahead of the release of US employment data for April, analysts said.