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The World Trade Organization  (WTO) said in a statement on Thursday that it made downward revisions to the world merchandise trade forecasts for 2018 and 2019.

Key Highlights:

The WTO forecast world trade in goods would grow by 3.9 percent this year, less than the 4.4 percent it forecast in April. Next year trade growth of 3.7 percent is expected, a cut from the WTO’s previous forecast of 4.0 percent.

Some of the downside risks it had warned of in April had now materialized.

“The direct economic effects of these measures have been modest to date but the uncertainty they generate may already be having an impact through reduced investment spending.”

“While trade growth remains strong, this downgrade reflects the heightened tensions that we are seeing between major trading partners.”

“More than ever, it is critical for governments to work through their differences and show restraint. The WTO will continue to support those efforts and ensure that trade remains a driver of better living standards, growth and job creation around the globe.”