The World Trade Organisation has warned the outlook for global trade is deteriorating, citing the eurozone crisis as the main drag on growth.
The WTO slashed its forecast for global trade growth this year from 3.7% to 2.5% on Friday, less than half the previous 20-year average. The WTO director general, Pascal Lamy, said there was more risk of things getting worse than better.
The news came as Brazil's finance minister lambasted the US and Japan for their latest rounds of quantitative easing, which will devalue their currencies and, he said, trigger a global currency war.
Next year the WTO expects trade to grow by 4.5%, compared with previous forecasts of 5.6% growth. That forecast is, however, based on the assumption that current policy measures will be enough to avoid a breakup of the euro and that US politicians will reach an agreement to stabilise public finances and avoid the "fiscal cliff".
The WTO is targeting 1.5% growth in exports from developed economies, down from its previous forecast of 2% growth. The situation has deteriorated even more for developing countries, where the WTO cut its forecast from 5.6% growth to 3.5%.
Read more: http://www.guardian.co.uk/business/2012/sep/21/wto-forecast-growth-global-trade
The WTO slashed its forecast for global trade growth this year from 3.7% to 2.5% on Friday, less than half the previous 20-year average. The WTO director general, Pascal Lamy, said there was more risk of things getting worse than better.
The news came as Brazil's finance minister lambasted the US and Japan for their latest rounds of quantitative easing, which will devalue their currencies and, he said, trigger a global currency war.
Next year the WTO expects trade to grow by 4.5%, compared with previous forecasts of 5.6% growth. That forecast is, however, based on the assumption that current policy measures will be enough to avoid a breakup of the euro and that US politicians will reach an agreement to stabilise public finances and avoid the "fiscal cliff".
The WTO is targeting 1.5% growth in exports from developed economies, down from its previous forecast of 2% growth. The situation has deteriorated even more for developing countries, where the WTO cut its forecast from 5.6% growth to 3.5%.
Read more: http://www.guardian.co.uk/business/2012/sep/21/wto-forecast-growth-global-trade
No comments:
Post a Comment