The World Trade Organization (WTO) predicts that global trade is expected to grow by just 1% in 2023, which represents a slowdown compared to the 2022 forecast of 3.5% (previously it was 3%).
The WTO also predicted that world GDP at market exchange rates will increase by 2.8% in 2022 and 2.3% in 2023.
According to a document published this Wednesday, the crises of the global economy are responsible for this slowdown. Among them are the war in Ukraine, which has resulted in high energy prices after sanctions on Russia, the tightening of monetary policy to control inflation by the Federal Reserve – which should influence spending such as housing, vehicles and fixed investments. – and the ongoing outbreaks of covid-19 in China.
The Geneva-based body said energy prices rose 78% in August from a year earlier, while food prices rose 11%, grains rose 15% and fertilizers rose 60%.
“What we need is a deeper, more diversified and less concentrated basis for the production of goods and services. We must also drive economic growth.
This will contribute to supply resilience and long-term price stability, mitigating exposure to extreme weather events and other disruptions,” said WTO Director-General Ngozi Okonjo-Iweala.
In 2022, the highest growth expected will be in the Middle East, with an increase in trade volume by 14.6% in exports and 11.1% in imports.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
