Trade growth to remain subdued in 2016 as uncertainties weigh on global demand

Growth in the volume of world trade is expected to remain sluggish in 2016 at 2.8%, unchanged from the 2.8% increase registered in 2015. Imports of developed countries should moderate this year while demand for imported goods in developing Asian economies should pick up. Global trade growth should rise to 3.6% in 2017, WTO economists reported on 7 April.

Risks to this forecast are mostly on the downside, including a sharper than expected slowing of the Chinese economy, worsening financial market volatility, and exposure of countries with large foreign debts to sharp exchange rate movements.  On the other hand, there is some upside potential if monetary support from the European Central Bank succeeds in generating faster growth in the euro area.

This has been excerpted from a 7 April 2016 press release by the World Trade Organization and is available in its entirety at:
https://www.wto.org/english/news_e/pres16_e/pr768_e.htm