The World Trade Organization (WTO) has revised its global trade growth forecast downward for both 2016 and 2017, citing a slowdown in economic expansion and trade deceleration in developing economies.
Revised Forecasts
The WTO now projects global trade to grow by 2.8% in 2016, down from its previous forecast of 3.9% in April. The forecast for 2017 has also been lowered to a range of 1.8% to 3.1%, compared to the earlier estimate of 3.6%.
Key Factors
Several factors contributed to this downward revision, including:
- Slower-than-expected economic growth in major developing economies such as China and Brazil.
- A decline in import demand from North America.
- Continued uncertainty surrounding the global economy.
WTO’s Recommendations
The WTO emphasized the importance of policies that promote trade and investment to support economic growth. The organization urged governments to resist protectionist measures and to work together to strengthen the multilateral trading system.
Specific Recommendations:
- Investing in infrastructure to reduce trade costs.
- Streamlining customs procedures.
- Promoting regulatory cooperation.
The WTO believes that these measures can help to boost trade and support economic growth in the years ahead.
