Pandemic boosted e-commerce in 2020: UNCTAD
The Covid-19 pandemic provided a boost for e-commerce last year, but the digital windfall was not enjoyed equally across the board, a UN study found. "Although it will take some time to get the full picture of the impact of Covid-19 on e-commerce... a number of developments point to the strong rise in e-commerce in 2020," said the report by the UN Conference on Trade and Development (UNCTAD).
The study crunched data from seven countries-Australia, Britain, Canada, China, Singapore, South
Korea and the United States-representing some two-thirds of online trade.
Online sales rose 59 percent in Australia, 46.7 percent in Britain, 32.4 precent in the United States and 14.6 percent in China. Turnover rose by 22.4 percent last year to $2.5 trillion, having increased by some 15 percent in 2018-19, UNCTAD said.
By contrast, overall retail sales declined by one percent. "These statistics show the growing importance of online activities," the report's author, Torbjorn Fredriksson, told AFP.
They also underscore the need for countries, especially developing states, to use such data as they rebuild from the pandemic, said Shamika Sirimanne, head of UNCTAD's technology and logistics section, in a statement.
A standout performer was Jumia, Africa's online retail giant, whose transactions jumped by more than 50 percent in volume in the first six months of 2020 compared with the first half of 2019, Fredriksson said.
European markets rose but Asia was mostly down as investors weigh the risk of inflation as the global economy recovers from the coronavirus pandemic. With London, Tokyo and Shanghai closed for holiday, traders elsewhere diverged ahead of more company results and US unemployment figures later this week.
Investment giant Warren Buffett instilled some unease after saying at the weekend that he expected the US economy was in "super high gear" thanks to massive Federal Reserve and government support but that it would fan inflation.
He said "people have money in their pocket and they're paying higher prices" and there was more inflation than expected six months ago.
His comments revived concerns that the explosive recovery, vaccinations and easing of lockdowns would push up prices to the extent that the Fed would have to ease up on its marketsupportive, ultra-loose monetary policies. Those worries continue to hover over trading floors despite Fed boss Jerome Powell's repeated insistence that they will not tighten policy until they are happy that unemployment has been tamed and inflation is running consistently hot for some time.
However, Dallas Fed president Robert Kaplan broke ranks with Powell on Friday as he said tapering could soon be considered. "We're now at a point where I'm observing excesses and imbalances in financial markets," he said. "I'm very attentive to that, and that's why I do think at the earliest opportunity I think will be appropriate for us to start talking about adjusting those purchases."
National Australia Bank's Ray Attrill said in a note: "The main overarching rationale remains on the pace of the recovery which he sees as being much faster than he previously expected and now forecasts unemployment at 4 percent by year's end.
"If that scenario plays out, it is also conceivable rate rises may start earlier, with Kaplan stating the Fed may need to raise rates next year." Paris and Frankfurt stock markets were up at midday. But Hong Kong and Singapore were down more than one percent, while Taipei shed two percent.