GENERAL TRENDS & DRIVERS OF WORLD TRADE IN 2022 Global core inflation, measured by excluding food and energy prices, is expected to be 6.6 percent.

A slowdown in global growth is forecast, from 6.0 percent in 2021 to 3.2 percent in 2022

The world is currently facing a very challenging state whether economically, politically or socially. While the world was still recovering from the effects of COVID-19, inflation and cost of living put a lot of pressure on all households with a big squeeze on their disposable income. The Russia – Ukraine conflict has also created disruptions on the geopolitical front, especially in Europe which is most directly affected by conflict with its reliance on gas driving natural gas prices to its highest levels As a result, the global economy is witnessing a slowdown and saw a real GDP contract as shown in (fig.1) although the total GDP has increased in numbers however the increase is only 2.8% compared to 5.7% in 2021.

In its efforts to combat inflation, central banks increase interest rates which is another factor in the slowdown of the economy. With the growing inflation and rise in food and energy prices, poor families are hit the hardest which in turn puts more pressure on governments to give support to the most vulnerable.

2.8%

While the inflation rate of consumer commodities has steadily increased as shown in (fig.2) it has reached its highest to 9.06%, however inflation is expected to decline by end of 2023 to 6.5%.

Source: International Monetary Fund statistics

Source: International Monetary Fund statistics

Source: International Monetary fund