BERLIN – The World Trade Organization has cut its forecast for global trade growth this year and is cautioning about the impact stemming from big exchange rate movements and geopolitical tensions.
Continue Reading Below
The Geneva-based body forecast Tuesday that the volume of world merchandise trade will expand by 3.3 percent this year, down from its forecast in September of 4 percent. In 2016, the WTO is forecasting 4 percent growth.
The WTO also said that trade growth last year was only 2.8 percent, below its projection of 3.1 percent. It blamed sluggish economic growth in emerging economies, the uneven recoveries taking place in developed economies as well as geopolitical tensions.
It says currency fluctuations have further complicated global trade and added that it's unclear whether falling oil prices will be trade-positive or not.