adplus-dvertising
Connect with us

News

Ukraine conflict puts fragile global trade recovery at risk – WTO

Published

on

okonjo iweala

The World Trade Organisation, WTO, says the war in Ukraine has created immense human suffering, but it is also putting the fragile recovery of global trade at risk, and the impact will be felt across the planet.

“Smaller supplies and higher prices for food mean that the world’s poor could be forced to do without. This must not be allowed to happen,” Ms Ngozi Okonjo-Iweala, the WTO Director-General said on Tuesday.

The war is taking place as other factors impact global trade, including the latest COVID-19 lockdowns in China which are again disrupting maritime trade just as supply chain pressures appeared to be easing.

Okonjo-Iweala urged governments to work with multilateral organisations like WTO to facilitate trade.

“In a crisis, more trade is needed to ensure stable, equitable access to necessities. Restricting trade will threaten the wellbeing of families and businesses and make more fraught the task of building a durable economic recovery from COVID‑19,” she said.

World merchandise trade volume is expected to grow just three per cent in 2022, down from the previous forecast of 4.7 per cent, and 3.4 per cent in 2023, though these figures could be revised given the uncertainty surrounding the conflict.

The Russian invasion began on February 24 and WTO said the most immediate impact of the war has been a sharp rise in commodity prices.

Both Russia and Ukraine are key suppliers of essential goods such as food, energy, and fertilizers, supplies of which are now threatened.

Grain shipments through Black Sea ports have also been halted, with possible dire consequences, particularly for poorer countries

Given the scant data on the economic impact of the conflict, WTO economists have had to rely on simulations for their assumptions about global Gross Domestic Product (GDP) growth through 2023.

Their estimates capture the direct impact of the war, including destruction of infrastructure and increased trade costs; the impact of Russian sanctions, including blocking Russian banks from the SWIFT international banking payments system; and reduced aggregate demand in the rest of the world – in part due to rising uncertainty.

WTO said world GDP at market exchange rates should increase by 2.8 per cent this year, or 1.3 percentage points down from the previous forecast.

Output growth should rise to 3.2 per cent in 2023, “assuming persistent geopolitical and economic uncertainty”, which is close to the 3.0 per cent average rate for the period 2010-2019.

In the Commonwealth of Independent States (CIS) region — created after the dissolution of the Soviet Union in 1991, and which excludes Ukraine — GDP is expected to drop 7.9 per cent, leading to a 12 per cent decline in imports.

However, exports should increase by nearly five per cent as other countries continue to rely on Russian energy.

“If the situation were to change, we might see stronger export volume growth in other fuel producing regions,” said WTO.

Given the current GDP assumptions, the agency has projected that merchandise trade volume growth this year could be as low as 0.5 per cent or as high as 5.5 per cent.

World merchandise trade volume grew roughly twice as fast as world GDP in the two decades before the 2007-2008 global financial crisis.  The ratio fell to around 1:1 on average in the wake of the crisis.

If the current forecast plays out, it suggests there will be no fundamental change in the relationship between trade and output.

“Risks to the forecast are mixed and difficult to assess objectively.

“There is some upside potential if the war in Ukraine ends sooner than expected, but substantial downside risks could emerge if fighting persists for a long time or if the conflict escalates,” WTO stated.

WTO said higher oil prices might reduce real incomes and import demand worldwide, while higher natural gas prices would probably have a greater impact in Europe.

The trade forecast was released together with annual merchandise and commercial services trade statistics.

The volume of merchandise trade, measured by the average of exports and imports, rose 9.8 per cent in 2021, with the value growing 26 per cent to 22.4 trillion. dollars

Commercial services trade, which includes the transport sector and covers container shipping and the passenger airline industry, was also up 15 per cent in 2021, reaching 5.7 trillion dollars.

Though trade in the travel sector was positive overall, they figures remained weak, as COVID-19 restrictions were only partially eased during the year.

WTO said western sanctions on Russian businesses and individuals are likely to have a strong effect on commercial services.

NAN

WATCH NOW

DOWNLOAD NOW

News

Gov. Bello swears-in seven new commissioners in Niger State

Published

on

Abubakar Sani Bello scaled

Governor Abubakar Bello of Niger State has sworn-in seven new Commissioners as members of the state executive council, to replace those who left to contest for elective offices.

Speaking at the ceremony at the Government House, Minna, the capital city, Bello charged them to live up to their responsibilities.

“You were selected after a thorough diligence report on each of you.

“Our decision to make you part of this cabinet today is based on the recommendations we have received about you,” he said.

He expressed optimism that the new Commissioners would add value to the cabinet in its remaining few months in office.

The governor urged them to exercise their duties effectively, saying that they were being sworn in at a critical period when government activities were winding up.

“At the same time there are challenges, meaning that you have no time to make a difference,” he said.

Bello enjoined them to take advantage of the opportunities to serve the state well.
The new commissioners included Abraham Umar, Habila Galadima, Usman Tinau, Kabiru Abbas, Yusuf Gunu, Sani Lafiya and Emmanuel Musa.

The oath of allegiance and office was administered by the state Chief Judge, Justice Halima Abdulmalik who was represented by Justice Bilkisu Yusuf.

WATCH NOW

DOWNLOAD NOW

Continue Reading

News

Kidnapper kills colleague as husband fought to save wife inside their home

Published

on

gunmen e1424907990566 1 scaled

Iliyasu Muhammad Hassan, a resident of Jos North LGA of Plateau State, has explained how a kidnapper killed his colleague when they stormed his house to abduct his wife.

Our Correspondent reports that the incident occurred at about 11pm on Monday, along Ring Road when the family were sleeping.

Hassan, who is receiving treatment at the Jos University Teaching Hospital after sustaining a gunshot injury, told this newspaper that when the kidnappers forcefully opened the door, they asked for money, and that he told them that there was no money, adding that they told him that since there was no money they would go with his wife, a move that he said would not be possible.

He said: “When the kidnappers decided to go with my wife, a thought came to my mind that these kidnappers would always do the same and succeed and nobody is doing anything to them.

“Anytime they go to kidnap, they do it freely without anybody saying anything to them.

“They do it without resistance.

“I further had another thought that if they went with her, I wouldn’t know what they would do to her and how I would cope with the children?

“From there, I moved to the front of my wife and said she would not go with them.

“The kidnappers were two, and unexpectedly I held one who was dragging her and we started fighting; for more than 30 minutes.

“The other one, who was holding a gun, shot at me but the bullet went to my mouth and came out through the lower jaw.

“In an attempt to shoot me for a second time, he shot his colleague on the stomach, and realising that he had killed him, he fled and left him there.”

Nafisa Muhammad, the wife of the victim, while explaining how the incident occurred, said she would live to remember her husband and would never forget the sacrifice he did for her, calling on other people to emulate his doggedness.

Daily Trust.

WATCH NOW

DOWNLOAD NOW

Continue Reading