World Trade Growth Expected to Slow in 2005
To set world on the right course, more opportunities for trade in developing countries need to be created.
Compiled by staff
Published: Oct 27, 2005
Lower economic output, brought on in part by the sharp rise in oil prices, will slow world trade growth in 2005, according to World Trade Organization economists. World merchandise exports are expected to grow by 6.5% in 2005, markedly less than the 9% growth recorded in 2004.
"While growth in trade will remain satisfactory in 2005 the decelerating trend is cause for some concern," says 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 the successful conclusion of the Doha Development Agenda round of global trade negotiations."
Trade growth picked up in OECD countries in the second quarter of 2005, but available information points to significant growth deceleration in intra-Asian trade and in U.S. imports in the first half of 2005. 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. The full impact of the price increases is still to be felt in consumer and business expenditure.
The main statistics show that world merchandise exports increased in nominal terms by 21% to $8.9 trillion in 2004. In real terms, merchandise exports rose by 9% in 2004 compared with nearly 5% in 2003. Trade in commercial services grew in nominal terms by 18% to $2.1 trillion in 2004, which was also stronger than the 14% growth recorded in the preceding year.
The European Union dominated regional shares of agricultural trade in agricultural products. The chart below shows the percentage of exports and imports in the trade picture.
To view a detailed chart of the value of agricultural products, click on "Leading Exporters and Importers of Agricultural Products" for a thorough outline of how countries rank compared to others. Again, the European Union dominates both imports and exports in agricultural products.
For more detailed charts from WTO economists on international trade statistics, visit Trade by Sector details.
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Tagged: agricultural trade
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