World trade is declining

The world trade volume decreased 0.9% in July 2021, compared to June, when trade growth was 0.7%. With this decrease, world trade momentum has become negative with -0.4% for the first time since the trade bounced back since the COVID-19 pandemic hit. The momentum calculates average growth over the past three months and compares this to the same three months last year. The negative momentum can be mainly explained by the continuing drop in China's trade. Imports have been falling since April and exports since February this year.