The World Trade Organization (WTO) on Thursday significantly increased its global merchandise trade growth forecast for 2026 to 3.9%, up from 1.9% predicted in March. It also raised the 2027 forecast to 4.1% from 2.6%. The upgrade is attributed to the artificial intelligence (AI) boom and the unexpected resilience of supply chains amid the Middle East crisis. Global GDP is projected to grow by 2.6% this year and 2.9% in 2027. WTO chief Ngozi Okonjo-Iweala highlighted trade's resilience, noting that while disruptions in the Strait of Hormuz reduced energy supplies and raised prices, most economies outside the region adapted successfully. Trade in semiconductors, servers, and other AI-enabling equipment surged by 67% year-on-year in the first half of 2026, accounting for 47% of global merchandise trade growth.