Growth in the volume of world goods trade looks set to drop to 2 per cent or less in 2001 after hitting a near-record 12 per cent last year, the World Trade Organisation (WTO) said today.
In its annual report, the WTO said the sharp decline was hitting all major regions and indicated it could get worse due to the September 11th attacks in the United States and their aftermath.
Main factors behind the decline included an unexpectedly strong decline in demand growth in the 15-nation European Union and other western European countries, the report said.
The other two key elements were the stagnation of imports into the United States in the first half of the year and a dramatic downturn in output and investment in the IT industry.
In May this year, the WTO predicted trade growth would slow to 7 per cent in 2001. But the report said events since then had forced the radical revision of the forecast.
Japan and the Southeast Asian "tiger" economies - major traders in office and telecommunication equipment - saw double-digit declines in the value of goods exports and imports in the first half, the new report said.