Global trade will shrink by 9 percent this year in the most devastating collapse since World War II, the World Trade Organization said Monday.

According to the latest report, the developed nations will be hit with a nearly 10 per cent decrease, whereas developing nations will only see their exports fall between 2-3 per cent. Despite richer nations seeing a bigger decline, the poor countries will be affected more, given their bigger dependancy on such trade.

The WTO warned against protectionism which will eat on worldwide efforts to save the economy and prolong the current difficult scenario.

“Trade can be a potent tool in lifting the world from these economic doldrums,” WTO Director-general Pascal Lamy said in a statement.

“In London G20 leaders will have a unique opportunity to unite in moving from pledges to action and refrain from any further protectionist measure which will render global recovery efforts less effective,” Lamy said, referring to the upcoming Group of 20 summit scheduled for early April.

Just two months ago, the WTO forecast a reduction in global trade this year of just 2.8 per cent.

Image by photohome_uk under Creative Commons.

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