OREANDA-NEWS  The economic sanctions imposed against Russia due to the conflict in Ukraine will have a negative impact on most of the world's economies, according to the World Trade Organization report for 2023.

The WTO noted that difficulties in bilateral trade can slow down GDP growth in countries with interconnected economies. "Trade tensions between China and the United States have resulted in a loss of wealth of 0.3% of GDP in China and 0.1% of GDP in the United States. Similarly, the economic sanctions imposed on the Russian Federation in response to the war in Ukraine are projected to have a negative impact on most economies, while the Russian Federation will face the largest drop in real GDP," the document says.

The Russian authorities have repeatedly raised the forecast of economic growth in 2023. So, in July, the Central Bank raised expectations from 0.5-2% to 1.5-2.5%. The Ministry of Economic Development predicts that GDP growth for the year will be 1.2%. At the same time, in early August, the head of the Ministry of Economic Development Maxim Reshetnikov said that the Russian economy would definitely grow by more than 2%. In 2022, according to Rosstat, the economy shrank by 2.1%.

The organization adds that geopolitical tensions usually affect "only a few countries" initiating a break in trade relations, while other countries may remain neutral or join some of the breakaway economies.