WTO Warns Trade Fragmentation Could Cut Global GDP by Over 5%

The World Trade Organization (WTO) has warned that a fragmentation of global trade along geopolitical lines could reduce world gross domestic product (GDP) by 5.1%, according to official figures reported by Anadolu Agency.

The Turkish news agency, citing WTO data, said a complete breakdown of global trade relations could push the potential loss even higher, cutting world GDP by 6.9%.

The figures underscore concerns at the WTO over the growing division of global trade into competing geopolitical blocs, a trend that has accelerated in recent years amid rising tensions between major economies.

According to the report, the WTO's warning highlights the economic risks associated with countries and regions realigning trade relationships based on political allegiances rather than open, multilateral trade principles.

Anadolu Agency did not specify further details on the timeframe or methodology behind the WTO's projections in the excerpt reviewed.

The WTO has previously advocated for maintaining open, rules-based international trade as a means of supporting global economic growth and stability.