Daily Management Review

WTO comments on world GDP and trade growth rates in 2022


The World Trade Organization (WTO) downgraded its forecast for global GDP growth in 2022 from 4.1 percent to 2.8 percent as a result of the conflict in Ukraine, according to the WTO’s report.

Jay Louvoin/ Studio Casagrande
Jay Louvoin/ Studio Casagrande
"Global GDP will rise by 2.8 percent on market exchange rates in 2022, down 1.3 percentage points from the previous prediction of 4.1 percent," the research adds.

According to reports, growth will rise to 3.2 percent in 2023, which is similar to the average of 3.0 percent from 2010 to 2019.

The estimates, according to the report, reflect the direct impact of the conflict in Ukraine, which has resulted in the destruction of infrastructure and an increase in trade costs, as well as the impact of sanctions on Russia, which has resulted in the disconnection of Russian banks from the SWIFT system, and a decrease in total demand in the rest of the world due to falling business and consumer confidence and growing uncertainty.

At the same time, another impeding factor was China implementing a quarantine to limit the spread of COVID-19. According to the WTO’s message, the adopted regulation "violates marine trading once again at a time when supply chain pressure appears to be weakening." In turn, this might lead to a recurrence of the production resource deficit and an increase in inflation.

source: wto.org