World Trade Organization (WTO) chief Ngozi Okonjo-Iweala hopes the latest escalation between Israel and Hamas will end quickly, as it could impact global trade flows if it spreads in the already vulnerable region.
Ms. Okonjo-Iweala added, during the meetings of the International Monetary Fund and the World Bank in Morocco, that violence in the Middle East region could increase the factors affecting the reduction of trade growth, including the increase in interest rates and the worsening real estate crisis in China in addition to the Russian war in Ukraine. .
“We hope that this violence will end soon and be contained,” Ms. Okonjo-Iweala added in an interview. “The biggest fear is that this conflict will expand, as it will have a really big impact on trade. Everyone is worried and hoping for the best.”
Okonjo-Iweala stated that global uncertainty is already affecting trade growth, but it will be exacerbated by the outbreak of war between Israel and Hamas, which controls the Gaza Strip.
“There is uncertainty about the potential for this conflict to spread to the entire region, and this could greatly impact global economic growth,” Ms. Okonjo-Iweala continued. “We hope that this conflict will end soon because it is causing this uncertainty. It is another dark cloud on the horizon.”
World Trade Organization officials are concerned about the escalating situation in Gaza
The World Trade Organization has cut its forecast for the growth of global goods trade this year by half, due to persistent inflation, high interest rates, slowing economic growth in China and the war in Ukraine.
The organization indicated that the volume of merchandise trade will grow by only 0.8% in 2023, compared to its forecast in April of 1.7%.
Regarding 2024, the organization said that the growth of goods trade could reach 3.3%, almost unchanged from its forecast in April, which amounted to 3.2%.
