"Lower economic output, brought on in part by sharp rise in oil prices, will slow world trade growth in 2005, according to World Trade Organisation economists. World merchandise exports are expected to grow by 6.5 per cent in 2005, markedly less than nine per cent growth recorded in 2004," WTO said.
While growth in trade will remain satisfactory in 2005 the decelerating trend is cause for some concern, said WTO director-general Pascal Lamy.
To set us on the right course we need to create more opportunities for trade, particularly in developing countries, and we need to adjust global trade rules to better meet the needs of entrepreneurs in the 21st century.
The way to achieve this is through successful conclusion of Doha Development Agenda round of global trade negotiations, he said.
The steep rise in real oil prices, to their highest level in more than two decades, has negatively affected consumer and business confidence in the oil importing countries though the full impact of the increased prices is still to be felt in consumer and business expenditure, a statement said.
World merchandise exports increased in nominal terms by 21 per cent to $8.9 trillion in 2004. In real terms, merchandise exports rose by 9 per cent in 2004 compared with nearly five per cent in 2003.
Trade in commercial services grew in nominal terms by 18 per cent to $2.1 trillion in 2004, which was also stronger than 14 per cent growth recorded in the preceding year.
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