WTO lowers trade forecast as tensions unsettle the global economy
In its latest report, the World Trade Organization (WTO) made downward revisions to the global trade forecast for 2019.
World merchandise trade volumes are now expected to rise by only 1.2% in 2019, substantially slower than the 2.6% growth forecast in April.
The projected increase in 2020 is now 2.7%, down from 3.0% previously.
Economists caution that downside risks remain high and that the 2020 projection depends on a return to more normal trade relations.
Trade conflicts pose biggest downside risk to the forecast.
Trade-related indicators signal worrying trajectory.
Disorderly Brexit could have a significant regional impact, mostly confined to Europe.
The report had little to no impact on the risk sentiment, as the US Treasury yields extend the rally while US equity futures trade firmer, driving USD/JPY to fresh eight-day tops just shy of the 108.50 level.