Global Trade Growth Slows During Year

Global trade hit a record $3.1-trillion last year, but it grew less rapidly than in the previous year and seems set to slow further in 1990, the world trade forum GATT said in a preliminary estimate Thursday.

The United States regained its place as the world’s leading exporter after three years in second place behind West Germany. Japan retained third position.

Trade volume in 1989 rose by an estimated 7%, compared to 8.5% in 1988, the report said.

Although this was enough to push the total above $3 trillion for the first time, the rise in value at 7.5% was almost half the rise of 14% in 1988, it said.

GATT added that the outlook for 1990 was generally optimistic with no world recession in sight.

But economic growth was expected to slow in advanced nations to just under 3%, and the rise in trade volume could ease to between 5% and 6%. Even that rate would equal or exceed trade performance in seven of the past 10 years.

The forecasts were part of a report by the secretariat of the 96-nation General Agreement on Tariffs and Trade based on data available in late February.

The report noted the value of world trade was below $2 trillion as recently as 1985, and the 7% volume increase in 1989 was the third largest during the 1980s.