International trade growth is likely to slow down this year, hurt by the global financial downturn, a report from the International Chamber of Commerce (ICC) said Thursday.
An annual survey by the ICC, in which 229 banks in 100 countries participated, showed that prospects for this year have been dampened by the global slowdown, and international trade growth is expected to slow to 5.2 percent in 2012, before accelerating to 7.2 percent next year.
The survey showed that though financial problems that hit international trade in 2009 and early-2010 - the worst since the Lehman Brothers-triggered crisis in 2008 - have diminished to some extent a number of residual issues remain unresolved.
Last year, global trade volumes increased at a faster-than-expected rate of 6.6 percent, driven by strong performance by developing countries, despite the slowdown towards the end of the year. Contributing to the trade growth, all the development banks increased their limits and resources last year, which is expected to continue, the report said.
In South Asia, trade between India and China outperformed other developing countries in the region in the first three quarters of 2011, before falling in the later part of the year. Meanwhile, exports from East Asia declined amid tighter domestic policy initiatives, the report said.
Trade in the Eurozone fell at a record pace of 5.85 percent last year, hurt by the region's deepening debt crisis and banking slump.
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