World trade body cuts forecasts

AP News
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Posted: Sep 23, 2014 11:29 AM

BERLIN (AP) — The World Trade Organization has sharply reduced its forecast for global trade growth this year, pointing to uneven economic growth in countries including China and the U.S.

The WTO said Tuesday that its economists are now predicting 3.1 percent growth in world trade this year, down from the 4.6 percent forecast in April. They also cut their outlook for 2015 to 4 percent from the previous 5.3 percent.

The Geneva-based body said global trade stagnated in the first six months of this year as a gradual recovery in demand for imports in developed countries was offset by declines in developing countries.

Its director-general, Roberto Azevedo, said that "uneven growth and continuing geopolitical tensions will remain a risk for both trade and output in the second half of the year."