WTO cuts 2016 world trade growth forecast to 1.7%, cites wake-up call

Tuesday, 2016-09-27 22:27:59
 Font Size:     |        Print
 

Container boxes are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China September 24, 2016. Picture taken September 24, 2016. (Credit: Reuters)
 Font Size:     |  

The World Trade Organization cut its forecast for global trade growth this year by more than a third on September 27, reflecting a slowdown in China and falling levels of imports into the United States.

The new figure of 1.7%, down from the WTO's previous estimate of 2.8% in April, marked the first time in 15 years that international commerce was expected to lag the growth of the world economy, the trade body said.

The figures should be a wake-up call for governments, WTO Director-General Roberto Azevedo said in the six-monthly trade outlook report.

The data underlined concerns that, after a long period of growth through globalisation and reliance on global trade, governments are increasingly seeking to protect their own industries and promote domestic producers at the expense of foreign competitors.

Reuters