New Delhi, Dec 15 (KNN) As the global economy faces recession and headwinds, the Ministry of Commerce and Industry on Thursday shared various indications with industry bodies regarding global trade prospects in the short to medium-term.

World trade is losing momentum in the second half of 2022 and remain subdued in 2023 as multiple shocks weigh on the global economy, said the Department of Commerce in a letter.

Amidst these indications, the department said it is pertinent for the exporters to prepare for upcoming challenges and also look for new opportunities based on country / region wise demand prospects.

Export Promotion Councils (EPCs) have been urged to closely and pro-activity monitor evolving global trade prospects and look for opportunities and avenues to expand our exports or diversify markets to economies/regions based on their demand prospects.

It has also asked industry bodies to be mindful of the fact that WTO predicts global merchandise trade volumes to grow by 3.5 per cent in 2022, slightly better than the 3.0 per cent forecast in April.

For 2023, however, they foresee a 1.0 per cent increase, down sharply from the previous estimate of 3.4 per cent.

The IMF also forecasts that global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades, read the letter.

The cost-of-living crisis, tightening financial conditions in most regions, Russia's invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the global growth outlook.

Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023.

Department of Commerce has recognised that it is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.  (KNN Bureau)