WTO Sees Sharp Slowdown in Global Trade, Pointing to Possible Recession, Lower Inflation
World trade in goods is set to slow more sharply than previously expected next year, possibly easing inflationary pressures but raising the risk of a global recession, a new forecast shows.
With the surge in energy costs and rising interest rates weakening household demand, exports and imports should increase by just 1% in 2023, down from a previous forecast of 3.4%, the World Trade Organization said Wednesday.
A slowdown in trade flows driven by weakening demand could help bring down price pressures by unblocking supply chains and reducing transport costs. It also means there...