WTO sees war weighing on global trade growth

Geneva: The World Trade Organisation is predicting that trade in goods will grow much less than previously expected this year, saying prospects for the global economy have darkened since the onset of Russia’s war in Ukraine.

The Geneva-based WTO Tuesday pointed to multiple uncertainties in its forecast over the next two years because Russian and Ukrainian exports of items like food, oil and fertilisers are under threat from the war. It also cited the lingering impact of the COVID-19 pandemic — notably from lockdowns in China.

Director-General Ngozi Okonjo-Iweala described a “double whammy” from the conflict and the coronavirus. She said the war has caused “immense human suffering” in the region and its effect has rippled around the world, notably in poorer countries.

The WTO said its projections for world trade take into account factors like the impact of the war, sanctions on Russia, and lower demand around the world from lower business and consumer confidence. It said world merchandise trade volume is expected to grow 3% this year, down from a forecast of 4.7% before the war began.

IANS

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