WTO raises red flags over global trade stagnation

Global trade is currently struggling with stagnation after a period of economic upturn generated by the end of the covid-19 social isolation measures, indicated data released on the 23rd by the World Trade Organization (WTO).

WTO’s Goods Trade Barometer indicates that global trade volume stood at 100, precisely the midpoint of the index that ranges from 90 to 110, showing stagnation. The organization attributes the economic downturn to the war in Ukraine and China’s “zero covid” policy.

According to the WTO, global trade grew 3.2% in the 1st quarter of this year, a slowdown compared to the last quarter of last year, with a high of 5.7%. Nevertheless, the barometer result is in line with the most recent WTO forecast in April this year, which estimates a 3% growth in world trade volume in 2022.

The World Trade Organization warns that uncertainty has increased as a result of the conflict in Ukraine, growing global inflation, and the predicted tightening of monetary policy in advanced nations. In early October, a revised prediction will be released.

The World Trade Organization warns that economic volatility has increased as a result of the conflict in Ukraine, growing global inflation, and the predicted tightening of monetary policy in developed economies. In early October, a revised prediction will be released.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/mundo/noticia/2022/08/24/omc-aponta-estagnacao-do-comercio-mundial.ghtml

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