World Trade Organization cuts 2016 global trade forecast to 2.8%

The World Trade Organization (WTO) has revised its 2016 global trade updated forecast for 2016 downward by more than one percentage point to 2.8% from 3.9%. The main reasons for cutting the forecast rate is slowdown in China and broad market volatility that continues to threaten growth.

WTO has mentioned that various factors were continuing to apply downward pressure on global trade and commerce. Declining commodities prices has shown few signs of reversing and also the slowdown in Chin, the world’s top commodities consumer remains uncertain. 

Slowing in China (and) worsening financial market volatility may be the key factors that could further suppress global trade in 2016.

IANS