GENEVA (Reuters), – After a rapid rebound after the initial shock from the COVID-19 Pandemic, global goods trade has slowed. This is due to production and demand disruptions and cooling demands for imports dampening growth.

After a August record of 110.4, the WTO reported that its goods trade indicator dropped to 99.5, nearing 100 points in November.

According to the Geneva-based trade organization, supply shocks such as port gridlock caused by the surge in import demand during the first half year, which disrupted the production of goods like automobiles and semiconductors had led to the fall.

The falling export orders indicated that there was less demand for the traded goods.

The WTO stated that while reducing import demand may help alleviate port congestion, backlogs or delays will not be eliminated so long as container throughput is at record highs.

WTO stated that the data was in good agreement with its prediction of a 10.8% rise in merchandise volume for this year. However, it expects a slowdown to 4.7% growth in 2022.

According to the WTO, global trade outlooks are still influenced by regional differences and downside risks.

Geneva-based trade organization said that all component indices of its barometer had fallen, with the sharpest drop for its auto products index and the only exception being the air freight index which was well above the trend.

Electronic components, container shipping, raw materials and other items were all at or near the 100 mark. These indicate growth that’s in line to medium-term trends.

WTO’s goods trade barometer has a combination of data. It is not a forecast, but a tool to predict turning points or gauge global trade momentum.