The global trade recovery may have hit its peak from the COVID-19 pandemic.

The World Trade Organization's trading goods barometer has hit 110.4, the highest point since the quarterly indicator was introduced in 2016.

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"Downside risks may be looming around the corner."

The global merchandise received a shock from the COVID-19 pandemic in 2020, however according to WTO's latest trade barometer the global merchandise may have peaked. The latest readings reveal the highest reading since the introduction of the trade barometer in 2016. In May 2020 during the COVID-19 pandemic the reading plunged to a record low of 87.6.

The barometer is a key economic indicator based on global export orders, trade in electronic components and agricultural raw materials.

"New waves of COVID-19 may threat the outlook for global merchandise trade."

According to the latest readings of container shipments, the index has significantly slowed down, the WTO said.

"The outlook for world trade continues to be overshadowed by downside risks, including regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries."

"COVID-19 continues to pose the greatest threat to the outlook for trade, as new waves of infection could easily undermine the recovery."

Chipmakers had to suspend operations in multiple countries.

In particular, chip maker Infineon had to shut its Malaysian factory in early August, Samsung Electronics suspended work at its factories in Vietnam, while Toyota Motor suspended production at 3 plants in Thailand.