WTO lowers global trade volume growth forecast to 3% for 2022

New Delhi (TIP)- The world merchandise trade volume is expected to grow by 3 per cent in 2022 against the earlier forecast of 4.7 per cent, mainly due to the ongoing war between Russia and Ukraine, the WTO said on Tuesday. Prospects for the global economy have darkened since the outbreak of war in Ukraine on February 24, prompting WTO economists to reassess their projections for world trade over the next two years, the World Trade Organisation (WTO) said in a statement. “The organisation now expects merchandise trade volume growth of 3 per cent in 2022 — down from its previous forecast of 4.7 per cent — and 3.4 per cent in 2023, but these estimates are less certain than usual due to the fluid nature of the conflict,” it added. The most immediate economic impact of the crisis has been a sharp rise in commodity prices. Despite their small shares in world trade and output, Russia and Ukraine are key suppliers of essential goods, including food, energy, and fertilisers, supplies of which are now threatened by the war, the statement said. Grain shipments through Black Sea ports have already been halted, with potentially dire consequences for food security in poor countries, it noted.           Source: PTI