“The trade slowdown appears to be broad-based, involving a large number of countries and a wide array of goods, specifically certain categories of manufactures such as iron and steel, office and telecom equipment, textiles, and clothing,” the WTO said. “Inflation, high interest rates, US dollar appreciation and geopolitical tensions are all contributing.”
Global goods trade will grow at less than half the pace predicted six months ago, the World Trade Organization said, citing inflation in the US and Europe, a prolonged war in Ukraine and China’s sluggish recovery.
The Geneva-based institution said it expects the volume of merchandise trade in 2023 to increase 0.8% from last year, compared with its April forecast for a 1.7% gain, according to a report released Thursday. That’s well below the average of 2.6% annual growth registered since the global financial crisis.
