The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has issued a warning to global leaders, urging them to swiftly resolve the conflict between Israel and Hamas militants to avoid a potentially significant impact on worldwide trade.
Speaking at the International Monetary Fund and World Bank annual meetings in Marrakesh, Morocco, Okonjo-Iweala emphasized that the ongoing violence in the Middle East could exacerbate the challenges already affecting international trade.
She pointed out that factors like rising interest rates, strains in the Chinese property market, and the conflict in Ukraine have already weakened the flow of global trade.
She expressed concerns that the conflict in the Middle East could escalate and further disrupt trade.
Okonjo-Iweala stated, “We hope this ends soon and it’s contained. Our biggest fear is if it widens, because that will then have a significant impact on trade. Everybody’s on edge, hoping for the best.”
She added, “There’s uncertainty about whether this will spread to the entire region, which could have a substantial impact on global economic growth. We hope that all the violence will cease because it creates uncertainty, adding another source of concern to the global outlook.”
Last week, the Geneva-based trade body reduced its growth forecast for global goods trade this year by half, citing ongoing inflation, rising interest rates, the slowdown of the Chinese economy, and the conflict in Ukraine.