The overwhelming and devastating effects of the financial crisis have hit international trade flows hard, with banks contending with weakened balance sheets and limited lending appetite.
The World Trade Organisation forecasts that the collapse in global demand brought about by the downturn will drive export volumes down by about 9% in 2009, the biggest contraction in trade flows since the Second World War. According to the World Bank, the slump in trade finance accounts for between 10% and 15% of the decline in trade so far.
