Active Stocks
Mon Mar 04 2024 15:59:52
  1. Tata Steel share price
  2. 153.10 -1.32%
  1. NTPC share price
  2. 353.80 3.50%
  1. Bharti Airtel share price
  2. 1,137.00 0.57%
  1. Larsen & Toubro share price
  2. 3,643.95 -0.28%
  1. Power Grid Corporation Of India share price
  2. 294.45 2.63%
Business News/ News / WTO cuts global merchandise trade growth forecast to 0.8%, cites broad-based slowdown
BackBack

WTO cuts global merchandise trade growth forecast to 0.8%, cites broad-based slowdown

WTO expects real world GDP to grow by 2.6 percent at market exchange rates in 2023 and by 2.5 percent in 2024.

In April, WTO had projected a trade growth of 1.7 percent in 2023. Photographer: Adeel Halim/BloombergPremium
In April, WTO had projected a trade growth of 1.7 percent in 2023. Photographer: Adeel Halim/Bloomberg

The World Trade Organisation (WTO) has scaled down global merchandise trade growth forecast to 0.8 percent, as it pointed towards the broad-based slowdown. The projection is less than half the 1.7 percent increase forecasted in April, as per a release issued on October 5.

The international trade body cited the inflation prevailing in the United States and Europe, the sluggish economic recovery in China and the continuing Russia-Ukraine war while projecting a grim forecast for this calendar year.

“These developments have cast a shadow over the outlook for trade. The trade slowdown appears to be broad-based, involving a large number of countries and a wide array of goods," the WTO said in a release.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!

However, the Geneva-based institution said its 3.3 percent growth projection for 2024 remains nearly unchanged from the previous estimate.

WTO furthermore expects real world GDP to grow by 2.6 percent at market exchange rates in 2023 and by 2.5 percent in 2024.

Trade growth should pick up next year accompanied by “slow but stable GDP growth", it said. Sectors that are more sensitive to business cycles should stabilise and rebound as inflation moderates and interest rates start to come down, it added, but also noted that “signs are starting to emerge of supply chain fragmentation, which could threaten the relatively positive outlook for 2024". 

For example, the share of intermediate goods in world trade, an indicator of global supply chain activity, fell to 48.5 percent in the first half of 2023, compared to an average of 51.0 percent over the previous three years, it said.

“The projected slowdown in trade for 2023 is cause for concern, because of the adverse implications for the living standards of people around the world," WTO Director-General Ngozi Okonjo-Iweala said. “Global economic fragmentation would only make these challenges worse."

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Oct 2023, 10:09 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App