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WTO scales down world trade growth projections for 2013 and 2014

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Capital Market
Last Updated : Sep 19 2013 | 11:55 PM IST

WTO says that the conditions for improved trade are already falling into place

* The World Trade Organization (WTO) has lowered growth projections for world trade in 2013 for the second time

* On a positive note, WTO says that the conditions for improved trade are already falling into place.

* WTO predict growth in 2013 at 2.5% against 3.3% projected in April and 4.3% earlier in the year.

* WTO has also lowered growth projection for 2014 to 4.5% from 5% predicted in April.

* Trade was only up 1.2% in the first half of 2013, and to realise 2.5% growth in 2013 would require a 3.8% growth in the second half of 2013, which is feasible, says WTO.

* On the export side, it expects a 1.5% increase for developed economies and a 3.6% rise for developing economies.

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* On the import side, the WTO is forecasting stagnant growth of -0.1% for developed countries and a more robust 5.8% increase for developing economies.

* In 2014, world trade is expected to advance 4.5%, with exports of developed economies climbing 2.8% and those of developing countries increasing 6.3%. Imports of developed economies are projected to grow 3.2% in 2014 while those of developing economies should expand by 6.2%.

* The revised trade forecasts are accompanied by a slight downward revision in the GDP estimates compared to the April release (from 2.1% to 2.0% in 2013, and from 2.7% to 2.6% in 2014).

* GDP figures refer to output at market exchange rates and are generally smaller than the equivalent figures measured at purchasing power parity (PPP).

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First Published: Sep 19 2013 | 4:54 PM IST

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