The world trade organization (WTO) has lowered its forecast for world trade growth in 2016 and 2017, reports TASS.
“World trade will grow in 2016, slower than expected – only 1.7%, significantly less compared to the April forecasts of 2.8%,” – noted the authors of the WTO report, released on Tuesday in Geneva.
“Forecasts for 2017 was also revised, – experts of the organization. – It is expected that trading will grow in the range of from 1.8 to 3.1%, projected growth of 3.6%”.
The reason for adjusting the forecast with the report called the decline in the increasing turnover in China and Brazil and the slowdown of imports in the United States.
It is also noted that in 2016, the growth in trade can be the slowest since 2009.
“Given the fact that global GDP growth in 2016 is expected to reach 2.2% in the current year may show the slowest growth in trade and production since the crisis of 2009,” the report reads.
WTO Director General Robert Azevedo, the Brazilian considers the conclusions about the “sharp slowdown of trade” contained in the report as “serious.” In his opinion, they should be seen as a “call to awakening”.
Azevedo stressed that the slowdown in trade growth “causes concern in the context of the growing anti-globalization sentiment.”
“We must ensure that this has not led to misguided policies that could exacerbate the situation – not only from the point of view of growth prospects and job creation, economic growth and development that is so closely associated with the open trading system”, – concluded the Director-General of the WTO.