WTO Global Trade Outlook and Statistics April 2025
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Merchandise trade forecast: BEFORE, earlier estimates anticipated positive growth for global goods trade in 2025. NOW, the WTO projects a 0.2% contraction.
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Trade policy environment: BEFORE, international trade operated under relatively stable and predictable tariff structures. NOW, the system faces unprecedented Trade Policy Uncertainty driven by US policy shifts and reciprocal tariffs.
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Sectoral performance divergence: BEFORE, merchandise and services trade growth often tracked closely together. NOW, there is a clear split, with merchandise shrinking while services trade expands robustly at 4.0%.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Consider the following statements regarding the WTO Global Trade Outlook and Statistics April 2025: 1. The report projected a decline in both global merchandise trade and global services trade for 2025. 2. Rising reciprocal tariffs and Trade Policy Uncertainty (TPU) were cited as primary reasons for the merchandise trade downgrade. Which of the statements given above is/are correct?