WTO cuts 2016 trade forecast to 2.8%

GENEVA (Web Desk) - The World Trade Organisation (WTO) has revised its 2016 global trade forecast downward by more than one percentage point by 3.9 per cent to 2.8pc, warning that a slowdown in China and broad market volatility continued to threaten growth.

In September, the WTO estimated that global trade would rise by 3.9 per cent this year, but lowered that projection to 2.8pc, in an updated forecast.

“Trade is still registering positive growth, albeit at a disappointing rate,” WTO director general Robert Azevedo said in a statement.

Various factors were continuing to apply downward pressure on global commerce, the Geneva-based body said.

The rout on commodities prices has shown few signs of reversing, while the full extent of the slowdown in China — the world’s top commodities consumer — remains uncertain.

The WTO listed “a sharper-than-expected slowing in China (and) worsening financial market volatility” as factors that could further suppress global trade this year.