Finance

Finance

WTO sees 9% global trade decline in 2009

24 March 2009 10:19 (UTC +04:00)

Baku. Vahab Rzayev â€“APA-Economics. The collapse in global demand brought on by the biggest economic downturn in decades will drive exports down by roughly 9% in volume terms in 2009, the biggest such contraction since the Second World War, economists of the World Trade Organization forecast today, APA-Economics reports. Signs of the sharp deterioration in trade were evident in the latter part of 2008 as demand sagged and production slowed. Although world trade grew by 2% in volume terms for the whole of 2008 it tapered off in the last six months and was well down on the 6% volume increase posted in 2007. The contraction in developed countries will be particularly severe with exports falling by 10% this year. In developing countries, which are far more dependent on trade for growth, exports will shrink by some 2%-3% in 2009, WTO economists say.

The International Monetary Fund forecasts 2.8% global trade decline this year.