By Emma Farge

GENEVA (Reuters), – Tuesday’s revision by the World Trade Organization (WTO), which reflects the Russia-Ukraine War and warns of a food crisis due to rising costs, saw its projection for global trade growth drop to 3% (from 4.7%).

Global trade watchdog, the report stated that the conflict caused economic damage at an important juncture in the world’s recovery process.

Ngozi Okonjo Iweala (WTO Director-General) stated, “The economic reverberations from this conflict will reach far beyond Ukraine’s borders.” He spoke at a press conference that presented the results.

“It is clear now that the dual whammy caused by the pandemic as well as the war disrupted supply chain, raised inflationary pressures, and decreased expectations for output growth and trade growth.”

According to the Geneva-based organization, global trade growth is estimated to reach 3.4% in 2023. However, 2022 and 2023 are more uncertain than normal due to conflict uncertainty.

Okonjo Iweala warned also of a possible food shortage that could hit the poorest countries hardest.

“This is the reason we must act and be decisive on this matter of food in an effort to avoid foodriots,” she stated. She also highlighted the need to have transparent monitoring systems, and to release buffer stocks for lower prices.