World Economy

Trade Growth Forecast Cut

Trade Growth Forecast CutTrade Growth Forecast Cut

 Slumping imports in China, currency market swings and falling commodities prices have led the World Trade Organization to cut its forecast for global trade in 2015 by half a percentage point,AP reported. The Geneva-based trade body projects global trade–the total of world exports and imports–to rise by 2.8%, down from a previous forecast of 3.3%. The WTO also said in its revised forecast Wednesday that volatile financial markets and US monetary policy have clouded the outlook. If the projections hold up, it would mark the fourth straight year that world trade grew by less than 3%. Meanwhile, IMF Managing Director Christine Lagarde said growth was picking up in the eurozone and Japan and still looked robust in the United States and Britain. “The not-so-good news is that emerging economies are likely to see their fifth consecutive year of declining rates of growth,” Lagarde said in prepared remarks, warning they could be hit by an extended period of low commodity prices.