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The 53 member commonwealth spans the developed and developing countries and the dive continents which includes both the world’s largest economies as well as many of the world’s smallest economies. It includes two of the world’s largest economies as India and the UK, five members of the G20 (India, Australia, South Africa and the UK) and two member of the G7 (Canada and the Up).

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The trade of the commonwealth countries in the year 2020 has been estimated to have lost up to $345 billion worth. It also includes the 460 billion worth of trade in intra-commonwealth. The commonwealth economies have even contracted by around 10% as compared to the pre-pandemic growth trends in the year 2020. The FDI inflows have also reflected decline with a loss of $153 billion to the commonwealth as per the year 2020. $1.3 billion and African $20 billion.

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The support to the cross-border trade by the link between trade, FDI and investments limits the trade prospects for commonwealth countries. The developing commonwealth countries have economic fallout where the exports in trade have declined by 10.1%. The highest contraction in exports is seen by Asian economies with $146 billion, followed by Caribbean by $4.2 billion, Pacific member.

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· Cheshmehzangi, A. (2020). COVID-19 and the small Commonwealth Oceania countries: Promising regional co-ordination. The Round Table, 109(4), 466-467.

·  Escaith, H., Khorana, S., MacGregor, J. N., Vickers, B., and Ali, S. (2020). The potential impact of COVID-19 on Commonwealth trade, recovery and resilience. Trade Hot Topics, (161).

· Lea, R. (2018). Commonwealth countries: future growth markets for UK exports. Arbuthnot Banking Group, 9.

· McDougall, D., and Ong, S. E. (2021). Introduction: COVID-19 and Commonwealth countries. The Round Table, 110(1), 10-15.

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The future growth sources for the commonwealth advantages includes the investments flows to the sectors such as e-commerce, digital technologies, cyber security, biotechnologies, head and healthcare. The countries can use the commonwealth advantage and robust policy responses to bolster vital trade and the investments flows. The major focus should remain on the flagship Connectivity Agenda where the digital connectivity will be the key. The commonwealth advantages sources enables the member states to trade up to 20 % more with each other with 21% lower costs.

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Benefits of Commonwealth Countries Trading

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Benefits of Commonwealth Countries Trading

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Commonwealth countries trading with each other benefit from cost advantages and their together accounts for 15% of the world’s GNI. Many of the commonwealth countries have favourable demographics where the working populations are expected to age and shrink.

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Intra-Commonwealth Trade of goods and services exports

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Intra-Commonwealth Trade of goods and services exports

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The average of imports and exports is measured in the Intra-Commonwealth trade which is expected to decline by 2% points more than the 2020-2021 developing Commonwealth countries. The drop in the developed Commonwealth economies is main reason behind the slow growth between intra-commonwealth countries. However, the expected growth linked with the trade during 2023-2035 is expected to be stronger with import demand forecast post 2022.

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Covid-19 Disruptions in Commonwealth GDP

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Covid-19 Disruptions in Commonwealth GDP

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The world is facing an unexpected recession due to the COVID-10 pandemic disruption in the global economy. The national incomes of the commonwealth countries have been drastically impacted due to the implications for Covid-19 disruptions. A decline in the merchandise trade in the range of 13-32 % in the year 2020 is seen. The pandemic has recedes in the second half of 2020 where it has been forecast that the Commonwealth’s Real GDP is likely to grow by 5.05% in the year 2021.

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Impact of Covid-19 on Commonwealth Countries

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Impact of Covid-19 on Commonwealth Countries

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There were only eight commonwealth developing countries which recorded higher overall FDI inflows in the year 2020 by comparing to the previous average which includes the countries as India in Asia, Gambia, Malawi, Guyana, Belize, Sierra Leone in Africa, Papua New Guinea in the Pacific, and Trinidad and Tobago among Caribbean SIDS. The Australia and Rwanda experiences a 50% decline in inflows while comparing it to the pre-pandemic situation as per the year 2017-2019.

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The expectation for the year 2022 involves the intra-commonwealth exports rebounding and surpasses $700 billon. However, the decline by 18% in 2021 is expected in the FDI inflows to the commonwealth and a further 7% in 2022. A total of $132 billion is expected to decline in 2022 FDI commonwealth inflows with a loss of around $220 billion compared with 2019.