BERLIN, Oct 1 (Reuters) - World trade will grow by 1.2% this year and by 2.7% in 2020, the World Trade Organisation (WTO) said on Tuesday, revising an earlier forecast as trade conflicts between the United States and China weigh on global trade.
“Trade conflicts pose the biggest downside risk to the forecast but macroeconomic shocks and financial volatility are also potential triggers for a steeper downturn,” the WTO said in a statement.
The organisation had previously lowered its forecast for trade growth to 2.6% for this year and to 3.0% in 2020.
Britain’s exit from the European Union is also weighing on the global economy, the WTO said, adding that a withdrawal without an agreement could have a significant impact, adding, however, that this would be mostly confined to Europe. (Reporting by Tassilo Hummel Editing by Madeline Chambers)