The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, issued a stern warning to global leaders, urging them to swiftly resolve the conflict between Israel and Hamas militants.
She cautioned that failing to do so could have a substantial and adverse impact on the worldwide trade landscape.
Dr. Okonjo-Iweala delivered this message during the International Monetary Fund and World Bank annual meetings held in Marrakesh, Morocco, on Thursday. She emphasized that the ongoing violence in the Middle East has the potential to exacerbate the challenges already stifling global trade growth.
The head of the WTO noted that various factors, including escalating interest rates, mounting pressures in the Chinese property market, and Russia’s conflict in Ukraine, have already placed significant strains on international trade flows. Dr. Okonjo-Iweala further underscored the ominous prospect of the conflict in the Middle East spreading and further destabilizing the global trade landscape.
“We hope this ends soon and it’s contained. Our biggest fear is if it widens because that will then have a really big impact on trade,” she said. “Everybody’s on eggshells and hoping for the best.”
“There’s uncertainty about whether this is going to spread further to the whole region, which could impact very much on global economic growth. We hope that all the violence will end… because it does create this uncertainty. It’s another dark cloud on the horizon.”
The Geneva-based trade body last week halved its growth forecast for global goods trade this year, citing persistent inflation, higher interest rates, the slowing Chinese economy and the war in Ukraine.