The World Trade Organization (WTO) has said the logistics sector could be operating in less favorable market conditions in 2022.
In its latest analysis on the outlook for world trade over the next two years, the WTO forecasts a decline in merchandise trade volume from 4.7% to 3.0% in 2022, and 3.4% in 2023 (see Table 1). The WTO said that the war in Ukraine is having a major impact on global commodity prices.
The volume of trade rose 9.8% in 2021 after dropping by 5% in 2020. The WTO is also forecasting lower export growth in nearly all regions of the world this year. Asia could see a sharp slowdown, to just 2%, compared with 13.8% last year, Europe could register growth of only 2.9%, compared with 7.9% in 2021, while North America could be reduced to 3.4% from 6.3%.
The WTO noted that China’s COVID-19 lockdowns were impacting global trade, specifically seaborne trade, which the organization said could lead to even higher inflation and manufacturing input shortages.
“Lockdowns in China to prevent the spread of COVID-19 are again disrupting seaborne trade at a time when supply chain pressures appeared to be easing.
This could lead to renewed shortages of manufacturing inputs and higher inflation,” the WTO said.
Source: The Loadstar