WTO Cuts Trade Forecast, Sees Rising Protectionism

(Industry Week – Agence France-Presse)

Trading volumes of developed economies are now expected to shrink by 14% while those of developing economies contract 7%

The World Trade Organization (WTO) warned Wednesday of rising protectionism amid the economic crisis as it sharply cut its forecast for trade volumes of developed and developing economies this year.

Making its latest assessment of the global economic situation, the WTO also observed that the sharp contraction of the global economy registered in the first quarter this year “appears to be slowing down.” However, citing risks including rising unemployment and oil prices, the organization lowered its forecast of global trade contraction to 10% from its March forecast of a shrinkage of 9%.

Trading volumes of developed economies are now expected to shrink by 14% instead of 10% while those of developing economies would contract 7%, rather than the earlier forecast 2% to 3%. Read more here.