The director general of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, assured this Monday that the international geopolitical situation has caused the international organization to foresee “downward risks” to world trade for 2024, which will be below the 3.3% officially forecast.
“We continue to review our forecasts for trade volume growth and believe they will be below the 3.3% growth forecast for this year”said the Nigerian-American economist at a press conference on the first day of the 13th Ministerial Conference in Abu Dhabi.
The head of the WTO pointed out “a flattening of aggregate demand” in trade and that it is related to “the current conflicts” in the Red Sea, in reference to the attacks by the Houthi Shiite rebels of the Yemen which has diverted a large part of the ships along a longer route, through the Cape of Good Hope (South Africa).
Also “the phenomenon of climate change in the Panama Canal, as well as other things that incident on the supply side. For this reason, we think about the downside risks,” he indicated, although he insisted that he cannot give the exact number.
He also wanted to highlight that some countries are doing it “quite well,” such as the United States and India.
During his speech at the opening of the trade summit, which runs until February 29 in the capital of the United Arab Emirates, Okonjo-Iweala, warned that the world is in a “more difficult” situation, and called for reform and revitalize the international organization.
Source: Gestion
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