WTO not optimistic about global trade situation in 2024

According to the WTO Director-General, global economic growth is weaker due to increasing geopolitical tensions and new disruptions that the WTO sees in the Red Sea, on the Suez Canal, Panama Canal.

A cargo ship at a container warehouse in Uiwang, 21km south of Seoul, South Korea. (Photo: Yonhap/VNA)

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala said on January 18 that she was not optimistic about the global trade situation this year. Speaking to reporters while attending the World Economic Forum (WEF) Annual Meeting in Davos, Ms. Ngozi Okonjo-Iweala said that global economic growth was weaker due to "increasing geopolitical tensions, new disruptions that the WTO saw in the Red Sea, in the Suez Canal, the Panama Canal." According to her, this means that the WTO feels "less optimistic."

The WTO had forecast trade to grow by 0.8% last year and 3.3% this year. However, this was before the Middle East conflict and recent geopolitical developments. Therefore, Ms. Ngozi Okonjo-Iweala warned that the next forecasts will show lower figures this year. In recent times, important trade routes have been disrupted by Houthi attacks on shipping in the Red Sea, along with the worst drought in decades in the Panama Canal. According to the WTO Director-General, she personally hopes that the conflict in the Middle East can end soon, while warning that this could have a "really big impact" on the already weak global trade flows if the conflict spreads throughout the region.

Ms Okonjo-Iweala also said that conflict in the Middle East could add to the already slowing trade growth, such as higher interest rates, the freezing of China’s property market and the conflict in Ukraine. “We hope this will end soon and all the conflicts will stop,” Ms Okonjo-Iweala added. “Our biggest fear is that the conflict in the Middle East will spread throughout the region, because that will have a really big impact on trade. Everyone is worried and hoping for the best.”

Source: https://www.vietnamplus.vn/wto-khong-lac-quan-ve-tinh-hinh-thuong-mai-tren-toan-cau-trong-2024-post922049.vnp

Source: https://baolangson.vn/kinh-te/638494-wto-khong-lac-quan-ve-tinh-hinh-thuong-mai-tren-toan-cau-trong-2024.html