Covid-19 briefing

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Economic damage from the Ukraine conflict will contribute to a significant slowdown in global growth. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest. War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 per cent in advanced countries, the IMF said.

The most immediate economic impact of the Russia-Ukraine conflict has been a sharp rise in commodity prices. Despite their small shares in world trade and output, Russia and Ukraine are key suppliers of essential goods including food, energy, and fertilisers, supplies of which are now threatened by the war, the WTO said.

Global growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023, according to the IMF.

The WTO expects merchandise trade volume growth of 3.0% in 2022 — down from its previous forecast of 4.7% — and 3.4% in 2023.