The global merchandise trade is expected to grow 0.9% this year due to frontloading of imports in the US due to sweeping tariffs announced by US President Donald Trump, according to the WTO forecast. It said higher tariffs will weigh on trade and it will bring next year's expected trade volume growth down to 1.8% from 2.5% projected earlier.
"World merchandise trade is now projected to grow 0.9% in 2025, up from the -0.2% contraction forecasted in April but down from the 2.7% estimate pre-dating the tariff increases." it said. The slight increase in the projection augur well for India.
India's exports remained flat at $35.14 billion in June due to global economic uncertainties, while trade deficit narrowed to a four-month low of $18.78 billion during the month.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
World Trade Organisation Director-General Ngozi Okonjo-Iweala said the shadow of tariff uncertainty continues to weigh heavily on business confidence, investment and supply chains.
"Uncertainty remains one of the most disruptive forces in the global trading environment." she said.
It added that Asian economies are projected to remain the largest positive driver of world merchandise trade volume growth in 2025, although their contribution in 2026 will be smaller than predicted in April.
North America will weigh negatively on global trade growth in 2025 and 2026, it added.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.