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WTO lowers world trade growth forecast for 2022 due to Covid-19 and Ukraine

A report from the agency indicates that the war has harmed the world economy and the Covid-19 continues to weigh on the recovery.

The World Trade Organization (WTO) on Tuesday revised down its forecast for world trade growth for this year, to 3% from 4.7%, due to the impact of the war between Russia and Ukraine, and warned of a possible food crisis caused by rising prices.

The report from the world trade watchdog notes that the war between the Russians and the Ukrainians has hurt the world economy at a critical juncture, at a time when Covid-19 continues to weigh on the recovery.

"The economic repercussions of this conflict will extend far beyond Ukraine's borders," WTO Director-General Ngozi Okonjo-Iweala told a news conference to present the findings.

“It is now clear that the double whammy of the pandemic and the war has disrupted supply chains, increased inflationary pressures, and lowered expectations for output and trade growth.”

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