The World Trade Organization expressed concern about the prospects for the development of the world economy against the backdrop of deglobalization processes. This was reported by Japanese publication Nikkei.
According to WTO estimates, global GDP could fall by 5% by 2030 if trade decoupling continues. Although there is no direct sign of the disappearance of full-scale globalization, some trends, such as the declining share of intermediate goods in world trade, are cause for concern, according to Ngozi Okonjo-Iewala. In the first half of 2023, this figure was 2.5% below the average level of the previous three years.
As the WTO president emphasized, countries have been moving away from free trade principles since 2017. The consequences could be not only an economic downturn but also rising tensions in regions key to global oil and gas trade.
The WTO has reduced its global trade growth forecast for 2023 to 0.8 percent and expects the growth rate to recover only by 2024, when growth will be 3.3 percent. Experts are concerned about the negative impact of the slowdown on people’s living standards.
Chinese President Xi Jinping at the end of September offered Reform the WTO.
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Formerly G7 trade heads reputed The need for WTO reforms.