Developing countries participate in half of world trade

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IANS | 21 Oct, 2014
The participation of developing countries in world trade accounts for nearly half of global trade, according to a report by the World Trade Organisation (WTO).

The report released Monday says that during the period between 2000 and 2012, the involvement of developing countries in world trade increased from 33 to 48 percent.

In the same period, the share of developing economies in world production rose from 23 to 40 percent.

The report shows the changing role of developing economies in world trade.

"Developing countries now account for half of the intermediate goods trade, which is a standard measure of global value chains...," said WTO Director-General Roberto Azevedo in opening remarks at the presentation of the document in Geneva.

The report says that since 2000, the GDP per capita in developing nations increased by 4.7 percent and only by 0.9 percent in developed countries.

The demand for raw materials, in many cases coming from developing countries, have increased the prices of commodities, and therefore have helped the development of nations that possess them.

Between 2000 and 2011, developing countries also increased their share of world agricultural exports from 27 percent to 36 percent.

On Sep 23, the WTO revised downwards its forecast for world trade growth to 3.1 percent in 2014, compared to 4.7 percent projected in April.

The WTO also adjusted its trade forecast for 2015, in which it considered that growth will reach a maximum of 4 percent instead of the 5.3 percent previously estimated.

These rates are well below the average growth over the last 20 years of 5.2 percent.

Azevedo said 2015 will be the third consecutive year with below average growth, and the situation is not expected to improve in the short term.