WTO: the world trade growth will decelerate in the current year
The forecast regarding the increase of the world trade level in 2016 was reduced by the World Trade Organization (WTO) more than three times due to the growth deceleration in China and a decline in the US imports. A fresh value of 1.7 percent has become significantly lower than expected in April – 2.8 percent. This has been for the first time over 15 years, when the international trade is increasing at a slower pace than the global economy, said the representative of the WTO. Roberto Azevedo, Head of the WTO, believes that these indicators should become a warning for the governments. He wrote about this in the report of the Trade Organization. In particular, the report said: “We need to make sure that this will not turn into a mistaken policy, which makes the situation worse not only in terms of the trade; this will worsen the matter of jobs creation, economic growth and development, which are so closely linked to an open trading system.”
The data point to the fact that after a long period of the increase due to globalization, the governments increasingly want to protect their industries during the crisis while the economies are using the domestic consumption as the reliable support. WTO reports that the growth of the trade in 2016 will amount only to 80 per cent of the expansion of the global economy.