MARRAKECH: World Trade Organization (WTO) chief Ngozi Okonjo-Iweala has said that she hoped the Israel-Palestine new conflict could be ended quickly, warning it would have a really big impact on already weak international trade flows if it widened throughout the region.
Okonjo-Iweala, in Morocco for this week’s annual gatherings of the International Monetary Fund (IMF) and World Bank, said Middle East conflict could add to factors throttling trade growth, including higher interest rates, Russia’s war in Ukraine, and a strained Chinese property market.
She said that global uncertainty was already limiting growth in trade, but that would be exacerbated by the sudden onset of conflict between Israel and the Hamas that controls the Gaza Strip, according to US media.
Okonjo-Iweala said that there is uncertainty about whether this is going to spread further to the entire region, which could impact very much on international economic growth.
WTO halves growth forecast
The Geneva-based trade body last week halved its growth forecast for international goods trade this year, citing higher interest rates, persistent inflation, the slowing Chinese economy and the war in Ukraine.
The WTO said merchandise trade volumes would increase by just 0.8% in 2023, in contrast to its April estimate of 1.7%.
For 2024, it said goods trade growth would be 3.3%, a forecast virtually unchanged from its April estimate of 3.2%.
The 164-member body repeated its warning that it saw some signs of trade fragmentation linked to international tensions, but no evidence of a broader de-globalization that could threaten its 2024 forecast.
