WTO forecasts better trade growth prospects in 2017
The World Trade Organisation (WTO) today raised the growth projections for trade to 3.6 per cent from the 2.4 per cent estimated earlier, a development which augurs well for India.
"The estimate for growth in world merchandise trade volume in 2017 was raised to 3.6 per cent," the WTO said in a statement.
It added the 3.6 per cent growth would represent a substantial improvement on the lacklustre 1.3 per cent increase in 2016.
"Stronger growth in 2017 was attributed to a resurgence of Asian trade flows as intra-regional shipments picked up and as import demand in North America recovered after stalling in 2016," it said.
WTO Director-General Roberto Azevedo said while the improved outlook for trade is welcome news, "substantial risks" that threaten the world economy remain in place and that could easily undermine any trade recovery.
"These risks include the possibility that protectionist rhetoric translates into trade restrictive actions, a worrying rise in global geopolitical tensions and a rising economic toll from natural disasters," he said.
Further, the Geneva-based multi-lateral trade body said that stronger growth particularly in China and the US have boosted demand for imports.
It also said the rapid pace of trade growth this year is "unlikely" to be sustained next year for a number of reasons.
"First, trade growth in 2018 will not be measured against a weak base year, as is the case this year. Second, monetary policy is expected to tighten in developed countries...," it said.
India's exports recorded a double digit growth of 10.29 per cent after a gap of three months to USD 23.81 billion in August, mainly on account of rise in shipments of chemicals, petroleum and engineering products.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.