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The commonwealth is made up of 54 countries working together for prosperity, democracy, and peace. Only 6 Commonwealth countries are developed the rest have different economic development. Its home to 2.4 billion people the third of the worlds population.

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Impact of Covid-19 in intra-commonwealth good and services exports.

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Impact of Covid-19 in intra-commonwealth good and services exports.

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The impact of Covid-19 has affected trade growth and exports from all commonwealth regions. The reason behind the dramatic decrease of good and series was the high level of uncertainty, lockdowns and social distancing. According to trade review the Intra-commonwealth trade has been affected by Covid-19 however it’s expected to recover and achieve $700 billion in export in 2022. The effect of goods and services was due to covid-19 involving high trade cost because of their small size, inadequate infrastructure, concentrate production, export sectors, vulnerability of climate change etc. According to (commonwealth secretariat, 2021) UK represented 24% of the total in the commonwealth trade, becoming one of the largest exporters of good and services. In 2019 the UK goods exports were about US$468 billion and service exports were $416 billion. The UK have always been a key destination for intra commonwealth exports but because of covid the result decreased about 9.9% in late December 2020.

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Impact of Covid-19 on commonwealth countries example India 

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Impact of Covid-19 on commonwealth countries example India 

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The effect of Covid-19 has caused a global economic crisis, impacting on societies, health care systems, youth, the poor informally employed this can challenge the growth in the commonwealth.  The effects in good and services exports globally and intra commonwealth was felt in early January 2020 especially during May when USA and Europe largest markets of exports shutdown because of strict national lockdowns resulting in a increase decline in intra commonwealth members exports. Especially from countries like the UK, South Africa and India which were mainly affected in their supply and demand.

Covid-19 had affected one of the largest commonwealth export country, India which was facing huge consequences in exports as they have 8.7% of the commonwealth global exports. India share of intra commonwealth trade grew dramatically from 4% in 2000 to 26% in 2019.  Even though household and government consumption increased, Covid-19 had effected consumer spending and investments. According to the commonwealth report their economy decreased by 23.9% between April and June and investment collapsed by 47% compared to other year.

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Commonwealth countries mainly export food products, mineral ores, metal and fuels. The health crises have created problems both on the supply side and demand side meaning there are fewer consumers and many delays. According to the Commonwealth it proves there has been an impact on good and services as commonwealth countries suffered a loss of $1.15 trillion in gross domestic product, with 45 countries having a dramatic decrease in growth.

5 major countries which are responsible for the exports of products or services are China, USA, EU, UK and Australia but because of Covid-19 they had a negative demand for commodities except for prices of agricultural products, mineral ores which were less affected.

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One factor which will have future growth in trade recovery is the commonwealth advantage, they strengthen the connections between the countries involved in the commonwealth it also enables member to trade up to 20% more than countries which are not members. The commonwealth advantage is a method to reduce the commonwealth trade cost for the poorest countries and the smallest members. The problem which commonwealth traders have is the cost in getting goods and services across borders. Way in which recover can become faster is by reducing trade cost making policy better, reducing cost in the poorest countries can help them overall in their trade, investment, and growth prospects. The only way trade recovery may improve is by improving in logistics performance, reducing the cost, and improving the efficiency of land, air, and sea transport. Some way in which trade can recover is by facilitating trade between commonwealth member improving transit time and reducing cost.

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According to UNCTAD, global trade has increased after the pandemic faster than the last two trade recessions. East Asian economies was successful through the pandemic as they capitalised on global demand for covid-19 related products. The future growth area is in the pacific, US, Asia and Africa. Africa have growth potential especially because they have a huge amount of youth population resulting to  deliver far more than other countries.  Through out the pandemic Asia and the pacific have given positive results in trade, increasing in exports to 10.0% and 9.1% in imports.

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In 2022 trade will increase by fixing the supply side, easing of policies in developed economies and easing inflationary pressure resulting for regional exports and imports to grow by 1.4% and 1.7% in 20222.
However the slow start of rollout in the beginning of the pandemic has affected trade recovery especially commonwealth member which may not already be vaccinated until 2023 to 2024.The demography also influences the recovery as there are high youth population in countries like Africa and Asian. The answer to improvement is Faster vaccine rollout will improve trade recover as many people will less likely be infected meaning trade will become sustained and strengthened, according to the commonwealth report world trade may recover by 6.5% in 2020.

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Q3 -Suggestion of improvement for the Commonwealth and the G7