Trade tensions between the world's major economic powers and the threat of a return to protectionism risk jeopardizing strong growth in world trade, which is expected to reach 4.4% this year, the director general of the WTO warned on Thursday (12-5-2018).
"The strong trade growth we are seeing today will be vital to sustain economic growth and recovery and to support job creation," said Brazilian Roberto Azevedo, on the occasion of the publication of the World Trade Organization's forecasts for 2018.
"However, These important advances could quickly be jeopardized if governments resort to restrictive trade policies.", particularly in the context of a process of measures and countermeasures that could lead to an uncontrollable escalation," he said.
"A cycle of retaliation is the last thing the global economy needs," insisted the director general of the multilateral organization.
The WTO has sharply revised upwards its forecast for world trade volume growth in 2018 to 4.4%, from the 3.2% previously anticipated.
"Preliminary data show that trade has started 2018 on the right foot," the WTO said, adding that trade growth in 2017 was 4.7 percent.
"The WTO's latest indicator of global trade prospects showed trade growth above trend in the first quarter, and other indicators such as export orders and container traffic suggest the start of a recovery."explains the director of world trade.
According to the WTO, the healthy trade situation is "encouraged by stronger economic growth in all regions, fuelled by rising investment and expansionary fiscal policy."
In 2019, trade growth is expected to stabilise at 4 percent.
But risks to the forecasts are significant – including rising trade tensions. A breakdown in trade among major players would derail the recovery that we have seen in recent years#WTOForecast
— Roberto Azevêdo (@WTODGAZEVEDO) April 12th 2018
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