WTO foresees fragile global economy amid Russia-Ukraine conflict

Prospects for the global economy have darkened since the outbreak of Russia-Ukraine conflict, said the World Trade Organization (WTO) in its annual trade statistics and outlook report published on Tuesday.

WTO economists projected in the report that the global gross domestic product (GDP) at market exchange rates is to grow by 2.8 percent in 2022, down 1.3 percentage points from the previous forecast of 4.1 percent. Growth is expected to pick up to 3.2 percent in 2023, close to the average rate of 3.0 percent between 2010 and 2019.

The organization expected world merchandise trade volume to grow by 3.0 percent in 2022, down from its previous forecast of 4.7 percent. The growth rate is estimated at 3.4 percent for 2023, but these estimates are less certain than usual due to the fluid nature of the conflict.

The most immediate economic impact of the crisis has been a sharp rise in commodity prices, the report said