The World Trade Organization (WTO) cut its forecasts for global goods trade on Wednesday after quarterly growth turned negative, with trade shrinking by an average of 0.7 per cent in the first two quarters of this year.

The WTO sees world trade growth of 2.8 per cent this year and 3.9 per cent in 2016, revised down from the forecasts it made in April of 3.3 per cent and 4 per cent, respectively.

Risks, including a potential US interest rate rise and further slowing in developing economies, are "firmly on the downside", the WTO said in a statement. Reuters