Trade volumes will fall by 9% this year, the biggest contraction since World War Two, as demand collapses in the biggest economic downturn in decades, the World Trade Organisation said in a report today.
The forecast - much steeper than the 2.8% fall forecast by the International Monetary Fund in January - underlined the scale and rapid worsening of the economic crisis faced by leaders of G20 countries when they meet next week.
'Trade can be a potent tool in lifting the world from these economic doldrums,' WTO Director-General Pascal Lamy said.
'In London G20 leaders will have a unique opportunity to unite in moving from pledges to action and refrain from any further protectionist measure which will render global recovery efforts less effective,' he added.
The volume of developed country exports will fall 10% this year, while trade-dependent developing countries will see export volumes shrink by between 2-3%, the WTO said.
World trade had tapered off sharply in the second half of 2008 to show growth of 2% over the whole year, after rising 6% in 2007, it said.
