“The surge in trade flows provides the means to climb out of this painful economic recession and can help put people back to work. It underscores, as well, the wisdom governments have shown in rejecting protectionism,” Pascal Lamy, WTO Director General, said in a statement, a copy of which was obtained by Gulf News.
The WTO’s March forecast was a 10% expansion in trade volumes.
Merchandise exports of developed economies are predicted to expand 11.5% in volume terms while the rest of the world (including developing economies and the Commonwealth of Independent States) is expected to see an increase of 16.5% for the year, the global trade watchdog said.
This would be the fastest year-on-year expansion of trade ever recorded since 1950.
“The strong recovery of trade signals improved economic activity worldwide,” Lamy was quoted as saying.
World merchandise trade rose sharply in the first two quarters of 2010, driven by the recovery of GDP in both developed and developing economies.
“Most economists expect output growth to slow in the second half as fiscal stimulus measures expire and the inventory cycle winds down. This is likely to restrain the growth of trade in the second half of 2010 when compared to the first half,” the WTO warned.
Jitendra Gianchandani, a Dubai-based business analyst said: “Global trade will primarily be driven by the emerging economies, including those in the Middle East. The UAE is a good example of how good infrastructure, connectivity and trade facilitations could spearhead trade and economic growth.” – Source: Gulf News