World Trade Recovery Expected in 2017 and 2018

The World Trade Organization (WTO) is forecasting that global trade will expand by 2.4% in 2017, placed within a range of 1.8% to 3.6%. In 2018, the WTO is forecasting trade growth between 2.1% and 4%.

The unpredictable direction of the global economy in the near term and the lack of clarity about government action on monetary, fiscal and trade policies raises the risk that trade activity will be stifled. A spike in inflation leading to higher interest rates, tighter fiscal policies and the imposition of measures to curtail trade could all undermine higher trade growth over the next two years, WTO said.

Attaining these rates of growth depends to a large degree on global GDP expansion in line with forecasts of 2.7% this year and 2.8% next year, expansion along these lines would represent a significant improvement on the 2.3% GDP growth in 2016, WTO added.

(Container News)