GENEVA (AP) – Global trade is forecast to weaken this year to the slowest pace since the depths of the Great Recession due to the U.S.-China trade war.
The World Trade Organization said Tuesday it expects volumes of traded goods to rise 1.2% this year, far below the 2.6% estimate it issued in April and the weakest since 2009.
Next year’s growth was estimated to drop to 2.7% from 3.0%, but the organization warned that still depends on solving trade disputes.
The U.S. and China in particular are in a wide-ranging dispute that has led to new tariffs on hundreds of billions of dollars’ worth of traded goods. There is little hope for an imminent resolution to the disagreement, which has sapped growth.
WTO chief Roberto AzevÃªdo said: “The darkening outlook for trade is discouraging but not unexpected.”