“Sustained increases in energy prices could increase risks for global trade, with potential spillovers for food security and cost pressures on consumers and businesses,” WTO Director-General Ngozi Okonjo-Iweala said
New Delhi:The global trade growth is expected to slow down to 1.9 per cent this year amid the West Asia crisis, the WTO said on Wednesday.
WTO economists warn that the ongoing conflict in West Asia could further reduce trade growth if energy prices remain elevated, it said.
WTO Director-General Ngozi Okonjo-Iweala said this baseline forecast is under pressure from the conflict in the Middle East.
“Sustained increases in energy prices could increase risks for global trade, with potential spillovers for food security and cost pressures on consumers and businesses,” she said.
It would also put pressure on food supplies and trade in services due to travel and transport disruptions.
“…global merchandise trade growth would slow to 1.9 per cent in 2026 from 4.6 per cent in 2025, as trade is expected to normalise, following a surge in AI-related products and the front-loading of imports to avoid new tariffs,” according to the WTO’s Global Trade Outlook and Statistics.
The forecast does not augur well for India as the country is looking to boost its shipments.