WTO: Global trade growth expected to remain strong

The World Trade Organization says that global trade is expected to remain strong, with the merchandise trade volume predicted to expand 4.4 percent in 2018 and 4.0 percent in 2019.

Brazilian Roberto Azevedo, Director General of the World Trade Organization, WTO, speaks during a press briefing about the WTO's World Trade Report 2017 at the headquarters of the World Trade Organization, WTO, in Geneva, Switzerland, Thursday, April 12, 2018.[Photo: IC]

The organization's annual forecast says the continued expansion depends on robust global growth and government support for the right trade policies. 

However, WTO Director-General Roberto Azevedo has cautioned there are signs that escalating trade tensions may already be affecting business confidence and investment decisions, which could compromise the current outlook.

"It is not possible to accurately map out the effects of a major escalation, but clearly they could be serious. A breakdown in trade relations among major players would derail the recovery that we have seen in recent years, threatening the ongoing economic expansion and putting jobs at risk."

The WTO also says China's economic rebalancing from investment to consumption should produce stronger, sustainable long-term growth. 

The organization says China's rebalancing might dampen imports slightly in the short-run but it should produce stronger, sustainable growth over the long term, which would support more trade.