The World Trade Organization (WTO) has lowered its projection for global trade expansion due to a weaker-than-expected performance in the first six months of the year.

The organization now anticipates merchandise trade volume to grow by 4.1% this year. This is a decrease from its prior estimate of 5.5% issued in April.

According to the WTO, trade growth slowed in the first half of 2006 because of decelerating economic activity. It cited factors such as rising interest rates and high oil prices as contributing to the slowdown.

“The moderation in trade growth during the first half of 2006 was more pronounced than expected,” the WTO stated in its revised forecast.

Despite the downward revision, the WTO maintains that global trade will continue to expand at a healthy pace, supported by strong demand in developing countries and ongoing trade liberalization efforts.

The organization also noted that risks to the global economy remain, including the possibility of further increases in energy prices and a potential resurgence of protectionist sentiment.

The WTO is scheduled to release its full trade statistics for 2006 in April of next year.