WTO Warns Of 'Most Serious And Sustained' Trade Disruptions
The WTO says poorer economies would bear the biggest losses, with fragmented trade cutting exports 18.6% and global GDP 5.1% by 2050.
- On Tuesday, the World Trade Organization warned that trade fragmentation could slash global GDP by 5.1% by 2050, urging members to reform rules amid a "worrisome trend" of eroding multilateral cooperation.
- WTO Chief Economist Rob Staiger described the trading system as at a "critical juncture," citing four major challenges: broader economic power distribution, growing state intervention, digitalization changes, and rising political friction.
- Trade fragmentation could hit poor economies nearly four times harder than rich ones, with least-developed countries facing a projected 10.6% real GDP decline by 2050 under a geo-fragmented scenario.
- In a more severe scenario where multilateral cooperation collapses and is replaced by a patchwork of free trade agreements, global GDP would fall 6.9% and exports nearly 27% by 2050.
- Conversely, enhanced multilateral cooperation could raise global GDP by 2.9% and boost exports by 18%, WTO Director General Ngozi Okonjo-Iweala said, emphasizing cooperation's founding logic remains relevant today.
38 Articles
38 Articles
World trade is not well-ordered, warns the WTO Chief Economist against WORLD. He fears huge loss of prosperity through ever new regional agreements.
The global economy could reach 2050 with a Gross Domestic Product (GDP, the value of all services and products produced in the economy) aggregate 6.9% below the level that it would achieve in the growth base projection until then, in a world where only bilateral trade agreements prevail between countries, estimates the World Trade Organization (WTO). Exclusive material for subscribers. To have full access, access the link of the subject and regi…
In a new report, the World Trade Organisation (WTO) calls for compliance with trade rules and warns against major damage to the world economy in the event of further encapsulation.
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