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COVID-19 and its Impact on ‎‎International Trade in SAARC ‎‎Economies: A Case Study of ‎‎Afghanistan

Dr. Jasdeep Kaur Dhami, Mr. Manbir Singh and Dr. Nassir Ul Haq Wani

Volume 3 Issue 3 | Sep 2020

DOI: 10.31841/KJEMS.2021.21

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Abstract

The coronavirus epidemic, which was first perceived in China, has infected ‎people in 185 ‎countries across the world. Outbreak of coronavirus caused ‎various restrictions on exports which ‎were imposed by 95 countries. The main ‎aim of this study is to find out the effect of COVID-19 ‎on international trade in ‎SAARC economies with prime focus on Afghanistan. As the world ‎merchandise ‎trade volume decreased by 1.2% in the fourth quarter of 2020. The export ‎growth ‎was -1.0% in case of North America and for Asia was -2.2%. The ‎forecasted GDP growth rate ‎for 2020 is -4.5% and 3.0% for 2021. The World ‎Bank recently warned that South Asia faces its ‎worst economic performance in ‎‎40 years due to the coronavirus pandemic. Afghanistan’s ‎economy has been ‎badly affected by the outbreak of the COVID-19 virus, owing to negative ‎‎impacts on consumption, exports, and remittances. The economy is expected ‎to contract by up to ‎four percent in 2020. The products with greatest export ‎potential from Afghanistan to World are ‎Lac; natural gums (excl gum arabic), ‎resins, balsams, etc., Figs, fresh or dried, and Grapes, dried. ‎Figs, fresh or dried ‎shows the largest absolute difference between potential and actual exports in ‎‎value terms, leaving room to realize additional exports worth $123.6 mn.‎

‎Keywords: ‎ COVID-19, Coronavirus, International Trade, SAARC‎