Global trade expected to grow 1.7% in 2023: WTO

Tags: Economy/Finance International News

The world trade organization (WTO) on 5th April revised its global trade growth outlook for 2023 upwards to 1.7% from last October’s estimate of 1%.

An overview of the news

• The World Trade Organization said in its forecast that trade growth for 2024 is expected to be 3.2 percent.

• However, the WTO said the forecast is highly uncertain and at a downside risk given the impact of ongoing global tensions, food supply problems and monetary policy tightening.

• Global trade growth in 2023 is still projected to be low, despite a slight increase in gross domestic product (GDP) estimates since last fall.

• Global commodity trade volumes are expected to grow by 1.7 percent this year, following a 2.7 percent increase in 2022, given the effects of the war in Ukraine, continuing high inflation, tight monetary policy and uncertainty in financial markets.

World Trade Organisation (WTO)

• It was set up on 1st January 1995 replacing the General Agreement on Tariff and Trade (GATT).

• Its main purpose is to promote rule based trading systems in the world and it also settles trade related disputes between the member countries. 

•  The headquarters of WTO is in Geneva, Switzerland.

• There are 164 member countries.

• Director General of WTO : Dr Ngozi -Okonjo-Iweala of Nigeria

• Report released by WTO : World Trade Report