WTO Upgrades 2025 Global Trade Growth Outlook to 0.9 Percent
(MENAFN) The World Trade Organization (WTO) on Friday upgraded its forecast for global trade growth in 2025 to 0.9%, reversing an earlier projection of a contraction—but cautioned that escalating U.S. tariffs are set to drag on trade by 2026.
The WTO’s previous report, issued shortly after U.S. President Donald Trump unveiled sweeping new tariffs during his "Independence Day" announcement on April 2, had predicted a 0.2% decline in trade this year. That marked a sharp downgrade from the 2.7% growth the organization had forecast before the tariffs were imposed.
In its latest update, the WTO said the revision to 0.9% growth was driven largely by front-loaded imports into the U.S. and other economies, as businesses rushed to stock up on goods ahead of tariff enforcement.
The surge in trade volumes is not a sign of recovery but rather a preemptive response to anticipated trade barriers, WTO economists noted.
US imports rose 11% year-on-year in the first half of 2024, the report showed, with other nations also accelerating import activity amid fears of retaliatory measures.
Despite the improved outlook for 2024, the WTO warned that the newly enacted tariffs—implemented this week—are expected to slow global trade in the second half of this year and beyond.
In a significant long-term adjustment, WTO economists lowered their 2026 trade growth forecast from 2.5% to 1.8%, citing sustained tariff pressure and uncertainty in global supply chains.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
