WEAKNESS in key regions and rising protectionism has give global trade its slowest growth since the 2008 financial crisis, says the World Trade Organisation (WTO).
WTO says global trade had its worst year since financial crisis WEAKNESS in key regions and rising protectionism has give global trade its slowest growth since the 2008 financial crisis, says the World Trade Organisation (WTO). The WTO forecasts that trade will expand 1.7 per cent in 2016, down from an April estimate of 2.8 per cent. It predicts real GDP growth of 2.2 per cent, marking the weakest performance since 2009, Bloomberg reported. Furthermore, the WTO sees a risk that trade won't pick up next year, cutting its 2017 projection to a range of 1.8 per cent to 3.1 per cent, down from 3.6 per cent previously. It said with increasing wariness of globalisation, governments and authorities must do more to support open trading that's more inclusive. The dramatic slowing of trade growth is serious and should serve as a wake-up call," said WTO director general Roberto Azevedo. "This is a moment to heed the lessons of history and re-commit to openness in trade, which can help to spur economic growth," he said. The revision follows a sharper than expected decline in trade volumes in the first quarter and a smaller than expected rebound in the second quarter as emerging economies such as Brazil and China remained under pressure. North America was also a disappointment, the WTO said, noting a deceleration there this year compared with 2014-2015.
