The World Trade Organization has halved its forecast for global trade growth this year in response to rising interest rates that have dented consumer spending power in the US, Europe and Asia.

The 164-member trade body slashed its estimate from April that predicted the global trade in goods would grow by 1.7% in 2023, saying it needed to be scaled back to 0.8%.
Persistent inflation had kept interest rates higher for longer than expected in most trading nations, the WTO said, while a strained Chinese property market and the war in Ukraine also cast a shadow over its outlook.

The Geneva-based body said the slowdown was broad-based, involving a wide spectrum of goods, though particularly iron and steel, office and telecoms equipment, textiles and clothing.

Cars were a notable exception, with surging sales this year compensating for chronic shortages that had limited shipments during the pandemic.