Evolving Trade Winds: WTO's Future Forecast
The WTO forecasts global merchandise trade to grow 2.4% in 2024, slowing to 0.5% next year due to cooling economies and tariffs. Services exports are also expected to see reduced growth. AI-related products and North American imports contribute significantly to 2024's higher projection.
- Country:
- India
The World Trade Organization (WTO) has projected a modest growth of 2.4% in global merchandise trade for this year, with a significant slowing to 0.5% expected next year. This change reflects the impact of a cooling global economy and the introduction of new tariffs.
The 2026 trade growth projection has been revised downwards from an earlier estimate of 1.8% to 0.5%. Additionally, global services exports are anticipated to decline from 6.8% in 2024 to 4.4% by 2026.
The WTO attributes this year's higher growth figures to increased spending on AI-related products and a surge in North American imports ahead of tariff changes. WTO Director-General Ngozi Okonjo-Iweala emphasized the need for nations to reimagine trade against the backdrop of current disruptions.
(With inputs from agencies.)
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