WTO Forecasts Slowdown in Global Economic Growth Due to Ukraine
The World Trade Organization (WTO) lowers forecasts for global economic growth due to the war in Ukraine. Growth is now expected to be 2.8 percent this year, compared to a plus of 4.1 percent previously expected.
According to the WTO, the economic recovery from the corona pandemic will be affected by the conflict in Ukraine.
For example, supply chains are further disrupted, and soaring energy prices further fuel inflation. As a result, according to the organisation, world trade growth will also be less strong than previously thought.
The WTO says the economic effects of the war will be felt far beyond Ukraine’s borders. For example, poor countries are particularly vulnerable to rising energy and food prices as a result of the conflict.
WTO Director-General Ngozi Okonjo-Iweala says poor countries must be helped to prevent people from going hungry.