News ID: 259585
Published: 0927 GMT October 02, 2019

Global trade to see weakest growth since Great Recession: WTO

Global trade to see weakest growth since Great Recession: WTO
Director General of the World Trade Organization Roberto Azevedo (FABRICE COFFRINI/AFP/GETTY IMAGES)

Global trade is forecast to weaken this year to the slowest pace since the depths of the Great Recession due to the US-China trade war.

The World Trade Organization said it expects volumes of traded goods to rise 1.2 percent this year, far below the 2.6 percent estimate it issued in April and the weakest since 2009, AP reported.

Next year's growth was estimated to drop to 2.7 percent from 3.0 percent, but the organization warned that still depends on solving trade disputes.

The US and China in particular are in a wide-ranging dispute that has led to new tariffs on hundreds of billions of dollars worth of traded goods.

 There is little expectation of an imminent resolution to the disagreement, which continues to sap economic growth.

"The darkening outlook for trade is discouraging but not unexpected," said WTO chief Roberto Azevedo.

The WTO sees continued risks from the trade wars, saying that "further rounds of tariffs and retaliation could produce a destructive cycle of recrimination."

The organization noted some economies are slowing anyway and other issues, such as the UK's anticipated exit from the European Union, are adding to uncertainty for businesses trading goods.

 

   
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