The World Trade Organization (WTO) has revised its global trade growth forecast this year from 4.7 percent to 3 percent due to the impact of the Russia-Ukraine war. The WTO has also warned about a potential food crisis that might be caused price surges.
Overview:
- This WTO report has stated that the conflict which is now in its seventh week has damaged the economy of the world that was at a critical point due to the COVID-19 pandemic.
- The lockdowns in China are also weighing down the economic recovery.
- The report has found that the conflict between Russia and Ukraine affects the whole world.
- The pandemic along with the war has disrupted global supply chains, increased inflation, and lowered trade growth expectations.
The forecast predicted by the WTO
The WTO has forecasted that the global trade growth in 2022 will be 3 percent while in 2023 it would rise to 3.4 percent. The forecasts for 2022 and 2023 are uncertain due to the conflict.
Warning regarding food crisis
The organization has also issued a warning regarding a potential food crisis that can affect the world as there are exports disruptions from Russia and Ukraine, both of which are major suppliers of grains and several other commodities. This export crisis is driving up the prices and it will affect the poor countries across the world.