Geneva: Some exporters could lose their trade markets permanently as a result of the world’s economic contraction, an International Monetary Fund official said on Monday.
“What we are seeing now is the sheer implosion of international trade. I think it’s transitory. However, we may also speculate that some of (the) international trade flows will disappear forever,” said Marek Belka, director of the IMF’s European department.
He told diplomats at the United Nations offices in Geneva that if the economic crisis causes long-suppressed US savings rates to turn positive “there will be less trade everywhere”.
“I think that domestic economy and intraregional integration will play a larger role than before. We should not count on global trade to such an extent as we are counting now,” he said.