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World Trade Organization (WTO) Forecasts 0.2% Decline in Global Goods Trade for 2025.

Economy Business | Dated: 22 Apr 2025

In April 2025, the Geneva (Switzerland)-based World Trade Organization (WTO) released its latest Global Trade Outlook and Statistics report, forecasting a 0.2% decline in global merchandise trade volume for 2025 under current tariff and policy conditions. This marks a sharp downward revision from the 3.0% growth forecast made in October 2024, reflecting growing trade tensions, tariff hikes, and policy uncertainty across regions.

🎯 Key Highlights:

- The global commercial services trade is expected to grow at a slower rate of 4.0% in 2025, down from previous projections, due to subdued demand and policy frictions.
- North America is expected to witness the sharpest contraction, with exports declining by 12.6% and imports falling by 9.6%, dragging down global trade growth by 1.7 percentage points.
- Asia is projected to see modest growth in both exports and imports at 1.6%, while Europe anticipates 1.0% growth in exports and 1.9% in imports, reflecting a mixed regional recovery.

💡 Other Important Facts:

(i) The imposition of reciprocal tariffs is estimated to reduce global trade growth by 0.6 percentage points, suggesting a significant impact of protectionist measures.
(ii) Trade policy uncertainty could potentially further depress global trade growth by 0.8 percentage points, underlining the importance of stable international trade regulations.

📚 Test Your Knowledge:

According to the World Trade Organization (WTO) report released recently, what is the projected decline in global goods trade for 2025?

Correct Answer: 0.2%

🚀 Quick Recap:

About World Trade Organization (WTO)

Director-General: Ngozi Okonjo-Iweala
Headquarters: Geneva, Switzerland