In its September forecast, the World Trade Organization (WTO) warned that it was worried world trade would only grow by 1.7% (in volume) in 2016. Between 1985 and 2007, world trade increased, on average, twice as fast as world production, whereas for the past four years it has just kept pace. If the WTO forecast for 2016 were to be confirmed, world trade would have risen less rapidly than world GDP, which grew between 2.2% and 2.9% in the first half of 2016. The globalisation of trade means that countries trade more and more with each other, and that trade between them increases faster than their national production. Free trade agreements include deeper provisions that go beyond trade barriers and more partners can significantly reduce the cost of trade, which, in turn, helps boost trade flows.

Source: Huffington Post January 17, 2017 01:05 UTC