The World Trade Organisation (WTO) has lowered growth projections for world trade in 2013 for the second time, but has said the conditions for improved trade are already falling into place.
WTO economists now predict growth in 2013 at 2.5% against 3.3% projected in April and 4.3% earlier in the year.
The projection is still higher than the 2% growth in world trade achieved in 2012.
The multilateral body blamed developing economies for the lower projections, stating that they are not importing as much as anticipated. It also expressed concerns about India’s economy being in the midst of a sharp contraction.
Slow revival in demand for imports in developing economies has hindered growth of exports from both developed and developing countries in the first half of 2013 and was the reason for the lower forecasts, the economists said.
On a positive note, the WTO believes that the conditions for improved trade are already falling into place as encouraging data from Europe, the US, Japan and China suggests that the economic slowdown has bottomed out and that a tentative recovery is underway.