WTO Warns Of High Downside Risks As Trade To Grow Least In A Decade
October 01 2019 - 3:41AM
RTTF2
The World Trade Organization slashed its global merchandise
trade forecast for this year to the lowest in a decade citing
escalating trade disputes and slowing global growth.
In its latest report, released Tuesday, the WTO said global
trade volume will expand 1.2 percent this year, which was well
below the April projection of 2.6 percent. The growth is forecast
to improve next year, to 2.7 percent but down from 3 percent
estimated in April.
According to WTO, trade conflicts pose the biggest downside risk
to the forecast. Moreover, the outlook for 2020 depends on a return
to more normal trade relations.
"The darkening outlook for trade is discouraging but not
unexpected," WTO Director-General Roberto Azevêdo, said.
"Beyond their direct effects, trade conflicts heighten
uncertainty, which is leading some businesses to delay the
productivity-enhancing investments that are essential to raising
living standards,"Azevedo added.
Azevedo urged WTO members to resolve trade disagreements and
work together in a spirit of cooperation to reform the WTO.
The latest trade forecast is based on the assumption that the
global economy will grow 2.3 percent each this year and next.
The organization cautioned that a sharper slowing of the global
economy could produce an even bigger downturn in trade. Finally, a
disorderly Brexit could have a significant regional impact, mostly
confined to Europe.
Moreover, the agency said the trade-related indicators suggest a
worrying trajectory for global trade. Across all regions, export
and import growth weakened in the first half of 2019.
Euro vs CAD (FX:EURCAD)
Forex Chart
From Apr 2024 to May 2024
Euro vs CAD (FX:EURCAD)
Forex Chart
From May 2023 to May 2024