WTO says 2005 trade growth slower than record pace of 2004
10 Nov '05
4 min read
Lower economic output, brought on in part by the sharp rise in oil prices, will slow world trade growth in 2005, according to World Trade Organization economists. World merchandise exports are expected to grow by 6.5 per cent in 2005, markedly less than the 9 per cent growth recorded in 2004.
“While growth in trade will remain satisfactory in 2005 the decelerating trend is cause for some concern,” said WTO Director-General Pascal Lamy.
“To set us on the right course we need to create more opportunities for trade, particularly in developing countries, and we need to adjust global trade rules to better meet the needs of entrepreneurs in the 21st century. The way to achieve this is through the successful conclusion of the Doha Development Agenda round of global trade negotiations.”
Trade growth picked up in OECD countries in the second quarter of 2005, but available information points to significant growth deceleration in intra-Asian trade and in US imports in the first half of 2005.
The steep rise in real oil prices, to their highest level in more than two decades, has negatively affected consumer and business confidence in the oil importing countries.
The full impact of the price increases is still to be felt in consumer and business expenditure.
The main statistics show that world merchandise exports increased in nominal terms by 21 per cent to $8.9 trillion in 2004.
In real terms, merchandise exports rose by 9 per cent in 2004 compared with nearly 5 per cent in 2003.
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