WTO Raises Outlook for Global Trade

• According to WTO Forecast and Report:
  • Global commerce to grow by 4.7% (it averaged 2.2% the last 2 years)
  • Recovery in rich economies will reduce risks in developing economies.
  • While Asia’s growth rates are spurging, china’s expansion is slowing.
  • Risks have been mitigated in, Europe aided by the easing of eurozone risks, US because of easing of brinkmanship over budget limits and tax policy between the Obama administrations and Republicans.
  • Concerns in developing countries include, large current account deficits in India and Turkey, currency crises in Argentina, over investment in productive capacity, and re-balancing economies to reduce their dependence of exports and rely more on domestic consumption.
  • Geopolitical conflicts in Middle East, Asia and Ukraine could prod energy prices to go up and disrupt trade flows.
• To ensure a level playing field & spur growth by opening markets and removing trade barriers, including subsidies, excessive taxes and regulations, 158 economies of WTO have set trade rules among themselves.
• Read at:http://www.thehindu.com/todays-paper/tp-business/wto-raises-outlook-for-global-trade/article5913153.ece

Exams Perspective:

1. Global commerce initiative
2. Brinkmanship
3. Tax policy
4. Geopolitics
5. WTO
6. Current Account Deficit (CAD)
7. Currency Crisis