To: jach who wrote (28330 ) 12/19/1997 6:13:00 AM From: Glenn D. Rudolph Respond to
WTO: 1997 WORLD TRADE UP 7%, ASIAN CRISIS LIKELY FELT IN 1998
Futures World News - December 19, 1997 01:34
FINANCIAL STOCK CURRENCY ECONOMY V%FWN P%FWN
Geneva-Dec. 19-FWN/UPI--THE WORLD TRADE ORGANIZATION reported today the volume of trade worldwide grew by 7% this year, propelled by robust activity in North and South America and recovery in western Europe.
The latest data from the WTO annual report published today compares with worldwide trade last year, which grew at 5%.
World Trade Organization Director Renato Ruggiero said the figures are based on data available in the summer, as the east Asian financial crisis was breaking.
But WTO's economists claim the growth figure remains "broadly in line with expectations" for the current year.
The report stated the full impact of the economic crisis in Asia will not be felt until 1998 and, this year, most of the affected economies will still have grown faster than the world average.
The economists said Asia export growth is likely to exceed import growth this year for the first time in a decade and forecasts this cause of trade friction is "likely to intensify in 1998."
According to WTO officials, the slowdown was already apparent in 1996 as Asia's two-way trade lost dynamism compared with rapid growth in previous years.
The volume of exports by six east Asian traders--Hong Kong, South Korea, Malaysia, Singapore, Taiwan and Thailand- -rose by 7% last year. That was higher than the world average but less than half the increase in 1995.
The report identifies the most dynamic region in 1996 was Latin America, as Mexico boosted the value of exports and imports by over 20%, while oil-exporting countries saw big increases in export earnings from higher oil prices.
