According to the WTO's revised forecasts, world merchandise trade volume is expected to grow by 1.7% in 2016, accompanied by real GDP growth of 2.2% at market exchange rates.

Africa and the Middle East received one of the biggest downgrades of -2.8%, while South & Central America received the biggest downward revision of -8.3%.

The WTO said the latest growth forecast is below the April forecast of 2.8%. The forecast for 2017 has also been revised, with trade now expected to grow between 1.8% and 3.1%, down from 3.6% previously.

"With expected global GDP growth of 2.2% in 2016, this year would mark the slowest pace of trade and output growth since the financial crisis of 2009," said the WTO.

“Trade growth was weaker than expected in the first half of 2016 due to falling import demand and slowing GDP growth in several major developing economies is well as in North America,” said the WTO.

WTO director general Roberto Azevêdo said the dramatic slowing of trade growth is serious and should serve as a wake-up call.

"It is particularly concerning in the context of growing anti-globalisation sentiment. We need to make sure that this does not translate into misguided policies that could make the situation much worse, not only from the perspective of trade but also for job creation and economic growth and development which are so closely linked to an open trading system.

"- News24.com