WTO cuts global trade growth forecast to 1.2% for 2019

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News:The World Trade Organization(WTO) has reduced its global growth forecasts for 2019 to 1.2% from the earlier 2.6%.

Facts:

  • The trade forecasts has been reduced due to (a)downgrades on slower growth in major economies (b)trade wars and (c)ongoing uncertainty over Brexit.
  • It has also said that the job creation may also be affected as firms employ fewer workers to produce goods and services for export.
  • However,the WTO has also said that it expects growth in trade volumes to accelerate to 2.7% in 2020 but cautioned that any pick-up depends on a return to normal trade relations.

Additional information:

About WTO:

  • The World Trade Organization (WTO) is an intergovernmental organization that is concerned with the regulation of international trade between nations.
  • The WTO officially commenced in 1995 under the Marrakesh Agreement signed by 124 nations replacing the General Agreement on Tariffs and Trade (GATT).
  • Currently,it has 164 members and 22 observer governments with Afghanistan and Liberia being the latest to join.