WTO paints gloomier global trade picture

Geneva: The World Trade Organization on Thursday downgraded its global trade forecast for this year and next, pointing to escalating trade tensions around the world.

"Escalating trade tensions and tighter credit market conditions in important markets will slow trade growth for the rest of this year and in 2019," the WTO warned in a statement. "Trade will continue to expand but at a more moderate pace than previously forecast".

The organisation now expects merchandise trade volumes to expand 3.9 percent this year and 3.7 percent in 2019, down from an April forecast of 4.4 percent and 4.0 percent growth, respectively.

It warned that it may have to cut its forecasts again because downside risks to its predictions "are considerable and heavily weighted to the downside".

The WTO´s downgrade comes only days after US President Donald Trump´s tariffs on another $200 billion of Chinese imports took effect, with Beijing accusing Washington of "economic intimidation".

The latest volley against Beijing brings the amount of goods hit by duties to more than $250 billion, roughly half of China´s exports to the United States.