Global Trade Growth Slows as WTO Cuts 2026 Forecast
The World Trade Organization slashed its 2026 global trade growth forecast to 0.5% amid inflation, deflation, and trade tensions. While 2025 shows slightly better prospects at 2.4% growth, officials express serious concern about economic instability worldwide.
Many countries worldwide face economic struggles. Resource scarcity, trade wars, and post-pandemic debt create these challenges. Europe and the United States now experience inflation. Meanwhile, China faces deflation.
The World Trade Organization (WTO) lowered its 2026 forecast for global trade volume growth to 0.5%. This marks a sharp drop from its August prediction of 1.8% growth. The organization cited delayed effects from former U.S. President Donald Trump's tariff policies.
WTO Director-General Ngozi Okonjo-Iweala expressed deep concern to reporters in Geneva. She stated the outlook for next year appears darker.
For 2025, the WTO raised its global trade volume forecast to 2.4%. This represents an increase from the previous 0.9% estimate. Two main factors drove this revision. The U.S. accelerated imports before tariff hikes, and trade in AI-related products expanded.
Economic policies continue creating unpredictable global trade patterns. Nations now grapple with balancing protectionism and international cooperation.