World trade grows in 2018

World trade grows in 2018

World trade grows in 2018, says WTO. Image: World Commerce

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

World trade grows in 2018

World trade grows in 2018, strong growth, but is threatened if trade tensions increase, says WTO.

World trade growth stagnated for a decade after the financial crisis, averaging 3 percent a year. But last year it grew 4.7%. Growth has been significant since the financial crisis of 2008.

World trade in goods will grow 4.4% this year, maintaining a rapid rebound which could, however, reverse if trade tensions worsen further, the World Trade Organization (WTO) said on Thursday, April 12, 2018.

World trade growth stagnated for a decade after the financial crisis, averaging 3 percent a year. But last year it grew 4.7% – well above the 3.6% estimated in September – and a 4.0% increase is expected for 2019, according to the WTO.

“However, this important progress can be quickly hampered if governments resort to restrictive trade policies, especially in a retaliatory process that could lead to uncontrollable aggravation,” WTO Director-General Roberto Azevedo said in a statement.

“A cycle of retaliation is the last thing the world economy needs. I urge governments to show restraint and resolve their differences through dialogue and serious involvement.”

The United States and China have threatened each other with tens of billions of dollars in tariffs in recent weeks, raising concerns that Washington and Beijing may engage in a large-scale trade war that could hurt global growth and affect markets.

 

World trade grows in 2018

The WTO forecast for 2018 places world trade growth at the top of previous expectations, as the Organization said last September that it expected growth in the range of 1.4% to 4.4%, probably around 3.2%.

The latest forecast raises this range to 3.1% to 5.5% on the basis of current forecasts of the Gross Domestic Product, but “a continuous escalation of trade restrictive policies can lead to significantly fewer,” the WTO said.

“These predictions, I repeat, do not take into account the possibility of a dramatic worsening of restrictions on trade,” Azevêdo told a news conference.

“It is not possible to accurately map the effects of a major aggravation, but clearly they can be serious,” he said. “The poorest countries could lose more.”

 

Source: DCI and Reuters

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