Economists warn of a downturn in world trade While Russia is managing the crisis to support its economy from the impact of Western sanctio
Economists warn of a downturn in world trade While Russia is managing the crisis to support its economy from the impact of Western sanctions, countries around the world are beginning to feel the effect of those sanctions on their own economies. Economists are raising concerns of an upcoming global recession as financial turmoil intensifies. Anti-Russia sanctions’ impact on global economy Sanctions imposed by the West against Russia will have a bigger impact on global gross domestic product (GDP) than the conflict in Ukraine itself, World Bank said on Monday. The International Monetary Fund (IMF) has also warned of a ‘severe impact’ on the global economy and financial markets, saying that anti-Russia sanctions will have significant consequences for many countries. Global trade in tatters Nearly all economies are already seeing a drop in international trade tied to disruptions triggered by the conflict in Ukraine and the subsequent economic sanctions, according to data by German think tank Kiel Institute. International trade has just started to recover from the pandemic-related slump in 2020 only to be hit again. The China-Europe rail freight route that goes through Russia was seeing a boom last year due to congestion in major ports, but now is suffering mounting cancellations from European clients. Sanctions on Russia are starting to wreak havoc on global trade, analysts say, pointing to devastating consequences for international importers. Supply chain problems intensify Hundreds of tankers and bulk carriers have been diverted away from the Russian and Ukrainian ports in the Black Sea. Stranded at ports and at sea, the carriers are unable to unload their cargoes as a result of sanctions. Global supply chains that were working for decades have already been disrupted by the Covid-19 pandemic, resulting in massive shortages, disruptions, and price inflation.
