Increased spending on semiconductors, data centres and digital infrastructure raised demand for imported AI-enabling goods, providing a significant boost to the global goods trade. (Envato Elements pic)

GENEVA: The WTO on Thursday sharply raised its global trade growth forecast for 2026, with merchandise trade riding the AI boom and proving more resilient than expected amid the Middle East crisis.

Thanks to supply chain adaptations and the surge in artificial intelligence investments, the World Trade Organization now projects 3.9% growth in the volume of merchandise trade this year, up from 1.9% predicted in March.

The WTO is forecasting 4.1%trade growth next year, up from the 2.6% predicted seven months ago.