WTO warns ‘darkened’ trade outlook could deteriorate further

• The WTO forecast a slowdown of global trade growth next year as sharply higher energy and food prices and rising interest rates curb import demand.
• Warned about a possible contraction if the war in Ukraine worsens.

Trade statistics

• Merchandise trade would increase by 3.5% this year, up from its April estimate of 3%.
• However, for 2023, it sees trade growth of just 1%, compared with a previous forecast of 3.4%.
• Provided a band of trade growth expansion of 2% to 4.9% for this year and of -2.8% to 4.6% for 2023.

Warns against curbs

• Curbs imposed by various countries on food and fertiliser exports had dropped from 57 to 42 in the past month.
• Rose back to 53 due to new measures.
• WTO’s forecast does not cover services, but said tourist arrivals were likely to fall after tripling in the first seven months of 2022.

Prelims Takeaway

• WTO