(Ecofin Agency) - World Trade Organization (WTO) announced on September 27, that global trade should grow by only 1.7% in 2016 slashing its 2.8% forecast in April 2016.

The organization added that this would be the lowest level of growth recorded since the global financial crisis. It results from a sharp fall in merchandise trade volumes during the first quarter of the year (-1.1% quarter-on-quarter, as measured by average of seasonally-adjusted exports and imports) and a smaller than anticipated rebound in the second quarter (+0.3%) amid slowdown of GDP growth in developing economies like China, Brazil, and in North America also.

WTO expects trade to grow between 1.8% and 3.1% in 2017, against 3.6% previously. The organization however indicates that overall trade dynamism remains weak. Though he said the situation was “grave”, WTO Director General Roberto Azevêdo said everything should be done so “it does nottranslate into misguided policies that could make the situation much worse, not only from the perspective of trade but also for job creation and economic growth and development”.