WTO Downgrades Trade Forecast Amid Tariff Fears

The World Trade Organization (WTO) has significantly downgraded its 2025 global trade growth outlook, projecting a decline of -0.2%. This reduction, triggered by rising concerns over US tariffs, could impact global GDP by 1.5% in the same year. The revised forecast reflects the WTO’s acknowledgment that potential US tariff increases pose significant economic risks. While a trade recovery is anticipated, growth will likely be limited to 2.5% in 2026.