WTO economists have forecast a collapse in the global demand by 9% due to the economic downturn in the current year. This is believed to be the biggest contraction since the Second World War.
Exports from developed countries are expected to shrink by 2 to 3%. In many countries, particularly in Asia, decline in export figures were already posted during 2008, as demand sagged and production slowed showing signs of a sharp deterioration.
World economic growth measured by Gross Domestic Product (GDP) slowed abruptly in 2008 against the backdrop of the worst financial crisis since the 1930s.
Feeble demand in developed economies resulted in a fall in the asset prices. Increased economic uncertainty crashed the world output growth down to 1.7%, from 3.5% a year earlier.
Growth in 2008 was the slowest since 2001 and also when compared with a 10 year average rate of 2.9%. Global merchandise trade is predicted to fall some 9% in volume terms in 2009, with developed economy exports falling by some 10% on average and developing country exports shrinking by 2-3%.
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Fibre2fashion News Desk - India
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