Trade fragmentation could hit poor economies much harder than rich ones, WTO warns
The report says a geo-fragmented world would cut exports 18.6% and hit least-developed countries far harder than rich economies by 2050.
- On Tuesday, the World Trade Organization published its 2026 World Trade Report, warning that trade fragmentation could reduce global output by up to 10% and disproportionately damage the poorest economies.
- WTO Chief Economist Rob Staiger described the trading system as at a "critical juncture," citing rising political friction, state intervention, and unprecedented trade policy uncertainty threatening the multilateral framework.
- Modeling reveals a 'geo-fragmented world' could cut global GDP by 5.1% and exports by 18.6% by 2050, whereas enhanced cooperation could raise global GDP by 2.9% and boost exports by almost 18%.
- Least-Developed countries would face disproportionate impacts, with real GDP projected to fall 10.6% in a fragmented scenario compared to 2.9% decline for high-income economies, according to the report.
- WTO Director General Ngozi Okonjo-Iweala emphasized that the multilateral system remains vital, urging members to adapt trade rules to a changing global economy while preserving openness and avoiding unilateral action.
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14 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.
WTO says global trade system at critical juncture, urges reform
By Olivia Le Poidevin GENEVA, Sept 15 (Reuters) - The World Trade Organization on Tuesday urged its members to reform global trade rules or risk a slide into fragmentation that could significantly reduce economic output and hit poorer countries hardest...
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