New Delhi, March 19 -- New Delhi: Global trade growth is set to slow down sharply in 2026, with the ongoing war in West Asia and rising energy prices emerging as key downside risks, according to the World Trade Organization (WTO).

World merchandise trade volume growth is projected to fall to 1.9% this year from a stronger-than-expected 4.6% in 2025, before recovering to 2.6% in 2027, the WTO said in its Global Trade Outlook released on Thursday.

The report cautioned that in a downside scenario, global trade growth could slow further to 1.4% if energy prices remain elevated due to prolonged geopolitical tensions. That would mark a slowdown from 4.7% expansion in 2025-faster than global GDP growth of 2.9%-driven largely by demand for AI-r...