The Geneva-based WTO projected that global goods trade will increase by 2.7% this year, compared with the 2.6% it forecast in April. But it predicted growth of 3% next year, down from the 3.3% it forecast previously. Last year, the volume of world merchandise trade was down 1.1%, pushed lower by high inflation and rising interest rates.

World trade is set to rebound this year at a slightly faster pace than previously forecast as central banks lower their key interest rates, the World Trade Organization said Thursday.

The World Trade Organization (WTO) raised its outlook for global goods trade this year slightly, but cautioned on Thursday that increasing geopolitical tensions and uncertainty over economy policy pose 'substantial' risks to its forecast.