WTO lowers trade growth forecast due to global tensions
ISTANBUL. KAZINFFORM The World Trade Organization (WTO) economists lowered its trade growth expectations for 2019 and 2020 due to global trade tensions and sluggish global economy, Anadolu Agency reports.
The WTO announced on Tuesday that it cut its annual global trade growth expectation to 1.2% for 2019 and 2.7% for 2020, down from 2.6% and 3% at the previous forecast last April.
Last year, the merchandise trade volume increased by 3% in the global area on a yearly basis, according to the WTO.
The organization noted while trade conflicts is the main risk, macroeconomic shocks and financial volatility are other problems for the global trade.
«Trade-related indicators signal a worrying trajectory for world trade based on global export orders and economic policy uncertainty,» it added.
Roberto Azevedo, the director general of the WTO, said «the darkening outlook» for trade is unexpected and trade conflicts raise uncertainty.
«Job creation may also be hampered as firms employ fewer workers to produce goods and services for export,» he added.
He also said resolving problems will reduce such costs of WTO members, which should work together to reform the organization and make it stronger and more effective.