WTO warns 'darkened' trade outlook could worsen as economic crises converge
Economy went from Fed pivot to Fed ‘pause’: David Kudla
Mainstay Capital Management CEO David Kudla weighs in on predictions that November will be the Federal Reserve’s last aggressive rate hike.
The World Trade Organization predicted a sharp slowdown in global trade volumes as "multiple shocks" including the Russian war in Ukraine, steeper borrowing costs and higher energy prices make manufacturing even more expensive.
The Geneva-based institution said on Wednesday that it expects trade growth to slow to a crawl in 2023 to just 1% – a marked decline from its earlier forecast of 3.4% and its forecast of 3.5% for growth this year.
"The global economy faces a multipronged crisis," WTO Director-General Ngozi Okonjo-Iweala told reporters. "The picture for 2023 has darkened considerably."
The WTO blamed a number of factors for the expected deterioration in trade, including higher energy prices resulting from Russia's war in Ukraine. A number of countries – including European Union members and the U.S. – have responded to the conflict by sanctioning Moscow, including targeting Russian oil exports.