WTO: World trade growth weakest since 2009 financial crisis
The World Trade Organization (WTO) has cut its forecast for global trade growth this year by more than a third, saying it’s the first time in 15 years international commerce will slip below GDP.
According to the WTO, global trade will expand by merely 1.7 percent this year which is well below the April forecast of 2.8 percent.
The forecast for 2017 has also been downgraded. Trade is now expected to grow between 1.8 percent and 3.1 percent, down from 3.6 percent.
“The dramatic slowing of trade growth is serious and should serve as a wake-up call. It is particularly concerning in the context of growing anti-globalization sentiment,” said WTO Director General Roberto Azevedo.
Trade has grown 1.5 times faster than gross domestic product over the long-term, and twice as fast when globalization picked up in the 1990s, according to the report.
This year trade will grow only 80 percent as fast as the global economy, the WTO said, adding it will be “the first reversal of globalization since 2001 and only the second since 1982.”
The recent run of weak trade and economic growth comes as a result of creeping protectionism as governments trying to shield their own industries and economies are increasingly driven by domestic consumption, the report said.
they are warning you..
“The dramatic slowing of trade growth is serious and should serve as a wake-up call. It is particularly concerning in the context of growing anti-globalization sentiment,” said WTO Director General Roberto Azevedo.”