Geneva, April 5 (Xinhua) -- Global trade in goods will grow by 1.7% in 2023, up from a forecast of 1% in October last year, the World Trade Organization (WTO) said in a report released Tuesday. The report said the "key factor" behind the revised global trade growth forecast was China's continued optimization and adjustment of epidemic prevention measures, which helped unleash consumer demand and boost international trade.

According to the WTO's annual Global Trade Data and Prospects report released on the same day, global trade growth this year will be significantly slower than last year and lower than the average in recent years due to negative factors such as the Ukraine crisis, high inflation, monetary tightening policies and financial market instability.

The report showed that global trade volume grew by a lower-than-expected 2.7 percent in 2022, dragged down by a sharp quarter-on-quarter decline in world trade in the fourth quarter.

'At market exchange rates, real global gross domestic product growth is projected to be 2.4% in 2023,' the report said. In 2024, global GDP growth is expected to rebound to 2.6 percent and global trade growth to 3.2 percent.

Ralph Orsa, the WTO's chief economist, said the lingering impact of the COVID-19 pandemic and rising geopolitical tensions were the main factors affecting global trade and output in 2022. In addition, continued interest rate increases in advanced economies are exacerbating the fragility of the banking system, which, if unchecked, could lead to broader financial instability.

Trade remains a force for resilience in the global economy, but trade will be under pressure from external factors in 2023, said WTO Director-General Jose Luis Iweala. Governments should avoid trade fragmentation and exercise restraint in introducing trade-restrictive policies.