WTO Cuts Trade Outlook, Says Russia War Risks Broader Decoupling

Russia’s war with Ukraine will slow the world economy’s nascent rebound from the pandemic, reduce goods trade and potentially lead to a broader splintering of global commerce, the World Trade Organization said.

The Geneva-based trade body lowered its projection for growth in merchandise trade this year to 3%, down from its previous projection of 4.7%. The WTO also said Tuesday it expects trade growth of 3.4% in 2023 and cited a number of downside risks to its assessment, including food insecurity and a possible resurgence of the virus.

“History teaches us that dividing the world economy into rival blocs ...