I (Meaning and importance of Exports) Unit Structure

participating countries. 
2.2 TRENDS IN WORLD TRADE 
International inter-dependence is the base of world trade. 
There are various trade restrictions on world trade. They include 
tariff and non-tariff barriers. In spite of such restrictions world trade 
is increasing in volume during the period 1995-2006. This is visible 
from the trends in world trade noted below.
The world exports of goods and services doubled between 
1995 and 2006 to reach over US $ 14 trillion in 2006. 
The years 2008 and 2009 were tumultuous ones for world 
trade. The sub-prime crisis of USA in 2007 led to the global 

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financial crisis in September 2008. The financial crisis resulted in 
full blown global recession which resulted in considerable fall in 
world trade. World trade volume grew by only 2.8% in 2008 as 
compared to 7.3% in 2007. The world trade growth tumbled down 
month after month from September 2008 on worlds. While the fall 
seems to have been stalled with the recovery in the later part of 
2009, but the world trade continues to vulnerable given the nature 
of recovery and the EU crisis. 
World Trade Estimates
(a) IMF Estimates 
 
The world recession in 2008-09 had deep impact on world 
trade. The global trade of about 16 US $ trillion in 2008 collapsed. 
In the first half of 2009 . The world trade was 5.8 US $ trillion 
compared to 8.2 US $ trillion in the corresponding first half of 2008. 
According to IMF, growth of world output and trade volume of 
goods and services fell to - 0.8% and 
– 12.3% respectively in 2009. 
The crisis seems largely to have petered out in the second 
half downtrend. The IMF projects a better than expected growth in 
the trade volume of 5.8% for 2010 and 6.3% for 2011. 
Consequently, world out put growth is estimated to increase to 
3.9% in 2020 and 4.3% in 2011.