International Trade Growth to Speed Up by 2% Until 2030 Due to Falling Trade Costs - WTO
The World Trade Organization (WTO) expects falling costs of trading to add between 1.8 and 2 percentage points to the yearly rate of global trade growth through 2030, mainly in developing countries, according to a report published Wednesday.
MOSCOW (Pakistan Point News / Sputnik - 03rd October, 2018) The World Trade Organization (WTO) expects falling costs of trading to add between 1.8 and 2 percentage points to the yearly rate of global trade growth through 2030, mainly in developing countries, according to a report published Wednesday.
According to previous WTO estimates, world merchandise trade volume is set to grow 4.4 percent in 2018 and slow down to 4 percent in 2019.
"Our projections predict that trade could grow yearly by 1.8 to 2 percentage points more until 2030 as a result of the falling trade costs, amounting to a cumulated growth of 31 to 34 percentage points over 15 years," the WTO World Trade Report 2018 said.
The reduction in trade costs is supported by new technologies, such as 3D printing and Blockchain, which still need more work to fully explore their potential, according to the organization.
"Developing countries are likely to gain an increasing share of global trade, but the quantitative effects will depend on their ability to catch up on the adoption of digital technologies. If this catching up occurs, developing and least-developed economies' share in global trade is predicted to grow to 57 per cent by 2030, from 46 per cent in 2015," the report reads.
Among the regions that are expected to benefit the most from trade growth between 2016 and 2030 are India, China, Sub-Saharan Africa, the Association of Southeast Asian Nations (ASEAN), and Nigeria.