World trade is expected to grow slower in 2007 given the prospect of weaker economic expansion in the coming year, the World Trade Organization (WTO) said on Thursday.

The global trade growth could slow down to 6 percent from 8 percent last year as world economic growth is expected to slip to 3 percent from last year's 3.7 percent, the WTO said in a report on trade in 2006 and prospects for 2007.

According to the report, world trade grew vigorously in 2006, the 8 percent expansion in merchandise trade the second highest since 2000. Economic growth was stronger than expected in Europe and Japan, while Chinese and Indian economies continued to record high growth.

Despite its huge trade deficit, the United States recorded its best annual merchandise export in more than a decade at about 14 percent last year, the report said.

Least-developed countries' exports rose sharply in 2006 due to much larger values of fuels exports and stronger exports of other primary products and manufactured goods.

Developing countries' share of world merchandise exports reached an all time record of 36 percent, with China's exports outstrip all others.

China's merchandise exports grew by 27 percent last year. In the second half of 2006, its merchandise exports started to exceed those of the United States, but for the whole year China still ranked third place, behind Germany and the United States.

"The strong performance of 2006 is welcome, particularly the gains made by developing and least-developed countries," WTO Director-General Pascal Lamy said.

"But this has to be consolidated. The uncertainties that lie ahead are a warning for us not to lose sight of the need to continue to reform the world economy," he added.

Lamy said the WTO's 150 members need to keep strengthening the multilateral trading system, particularly by concluding the Doha round of trade talks.

"A successful conclusion to the Doha Round holds great potential for boosting growth and alleviating poverty. An agreement would also deliver more relevant trade rules, helping to establish a more stable and certain foundation for today's dynamic global marketplace," he said.