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April 14, 2022

Andrew Campbell 

Because of the ongoing crisis between Russia and Ukraine, as well as a potentially more transmissible Omicron variant besieging China, the World Trade Organization (WTO) reduced its global trade forecast for 2022 to 3% from 4.7 % on April 12. The forecast for 2023 is 3.4%.

According to WTO Director-General Ngozi Okonjo-Iweala, the economic ramifications of the conflict will extend far beyond Ukraine's borders, she said during a news conference announcing the findings. Okonjo-Iweala also warned of a potential food crisis caused by disruptions in exports from Ukraine and Russia, both important suppliers of grains and other commodities, which she said would disproportionately affect poor countries, including 35 African importers.

According to the World Trade Organization's most recent report on trade data and outlook, China's COVID-19-related lockout is yet another factor undermining development prospects by causing new trade disruption. Okonjo-Iweala urged governments and international organizations to collaborate to ease trade in a time of inflationary limits on essential commodities and increasing strain on supply chains.