Current Affairs - Economy - Discussion

The World Trade Organization has projected a 0.2% decline in global merchandise trade for 2025, reflecting heightened trade tensions and increasing uncertainty in global trade policy. This figure contrasts with the 2.9% growth seen in 2024 and underscores a troubling shift driven largely by tariff measures and ongoing disputes, particularly between the US and China. The WTO warns that if these tensions worsen, the contraction could deepen significantly. While global services trade is expected to grow modestly at 4.0%, the slowdown in merchandise trade affects key service sectors like transport and investment. Least-developed countries are especially vulnerable due to their dependence on exports.