The World Trade Organization (WTO) has downgraded its forecast for global trade growth in 2022 to 3% from its previous forecast of 4.7%, according to a fresh report released on Tuesday
GENEVA (Pakistan Point News / Sputnik - 12th April, 2022) The World Trade Organization (WTO) has downgraded its forecast for global trade growth in 2022 to 3% from its previous forecast of 4.7%, according to a fresh report released on Tuesday.
"Prospects for the global economy have darkened since the outbreak of war in Ukraine on 24 February, prompting WTO economists to reassess their projections for world trade over the next two years. The organization now expects merchandise trade volume growth of 3.0% in 2022�down from its previous forecast of 4.7%�and 3.4% 2023," the report said.
The conflict's most immediate economic impact was a sharp rise in commodity prices, as "Russia and Ukraine are key suppliers of essential goods including food, energy, and fertilizers, supplies of which are now threatened by the war."
"The war is not the only factor weighing on world trade at the moment. Lockdowns in China to prevent the spread of COVID-19 are again disrupting seaborne trade at a time when supply chain pressures appeared to be easing. This could lead to renewed shortages of manufacturing inputs and higher inflation," the report added.
