GENEVA, Switzerland — The World Trade Organization (WTO) raised its outlook for global goods trade this year slightly, but cautioned on Thursday that increasing geopolitical tensions and uncertainty over economy policy pose "substantial" risks to its forecast.

The Geneva-based WTO projected that global goods trade will increase by 2.7 percent this year, compared with the 2.6 percent it forecast in April. But it predicted growth of 3 percent next year, down from the 3.3 percent it forecast previously. Last year, the volume of world merchandise trade was down 1.1 percent, pushed lower by high inflation and rising interest rates.

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