Trade contraction showing signs of bottoming out: WTO
Sunday, 26 July 2009
GENEVA, July 25 (AFP): The contraction in trade in response to the economic crisis appears to have begun bottoming out, with Asia already showing a rebound, World Trade Organisation chief Pascal Lamy said yesterday.
But Lamy warned against "excessive optimism" as he pointed out that jobless numbers were still rising and that the political and social impact of rising unemployment had not been fully registered.
"Although financial markets have recently shown signs of stabilisation, and the trade contraction ... seems to (have begun) bottoming out, it is unclear how and how long it will take us to exit the crisis," he told delegates of the WTO's 153-member states.
Noting that unemployment is continuing to rise, Lamy warned that "its full social and political effects are still to be felt."
Lamy had made a similar warning in early July, saying that the worst social and political effects of the economic crisis are "still to come."
On July 1, the WTO also cut its forecast of global trade contraction for 2009 to 10.0 per cent from its March forecast of a shrinkage of 9.0 per cent.
But Lamy warned against "excessive optimism" as he pointed out that jobless numbers were still rising and that the political and social impact of rising unemployment had not been fully registered.
"Although financial markets have recently shown signs of stabilisation, and the trade contraction ... seems to (have begun) bottoming out, it is unclear how and how long it will take us to exit the crisis," he told delegates of the WTO's 153-member states.
Noting that unemployment is continuing to rise, Lamy warned that "its full social and political effects are still to be felt."
Lamy had made a similar warning in early July, saying that the worst social and political effects of the economic crisis are "still to come."
On July 1, the WTO also cut its forecast of global trade contraction for 2009 to 10.0 per cent from its March forecast of a shrinkage of 9.0 per cent.