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WTO predicts slowdown in global trade growth

AT

Kabul: The World Trade Organization (WTO) on Wednesday predicted that the growth of world trade will decrease in the next year (2023) due to the sharp increase in energy and food prices and the increase in interest rates, which has limited imports.

Reuters news agency reports that the trade body based in Geneva warned against the deterioration of world trade growth as the war in Ukraine worsened.

In this report, it is stated that the high price of energy caused by the war between Russia and Ukraine in Europe will put pressure on household expenses and increase production costs. The tightening of monetary policy in the US is hitting interest-sensitive spending on housing, motor vehicles and fixed capital investment.

This organization announced that trade in goods will increase by 3.5 percent this year. The April forecast of this organization in the field of goods trade was 3.0 percent. However, for 2023, it predicted business growth of only 1.0 percent.

The World Trade Organization previously predicted that the growth of world trade in 2023 would be 3.4 percent.

“Ngozi Okonjo-Iweala “, the head of the World Trade Organization, said that the image of the world’s trade situation in 2023 is very dark. If the war in Ukraine worsens, it will have a big impact on the situation.

The world needs a more diversified and less concentrated base for the production of goods and services, she said, to boost growth, increase resilience and stabilize prices in long term by reducing exposure to extreme weather events and localized disruptions.

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