WTO Secretary-General: "Global Recession Approaching... Need to Find Ways to Restore Economic Growth"

Global Trade Growth Rate Forecast Revised Downward Again

[Asia Economy Reporter Ki-min Lee] Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), stated on the 27th (local time) that "a global economic recession is approaching, and we need to start finding ways to restore economic growth."

Director-General Okonjo-Iweala made these remarks at the WTO Annual Forum held in Geneva, Switzerland, saying, "The World Bank and the International Monetary Fund have downgraded their global economic growth forecasts, and trade indicators do not look promising."

She cited the Ukraine war, energy and food crises, climate crisis, and the aftermath of the pandemic as factors contributing to the global economic recession.

She also assessed that central banks of various countries seem to have limited options other than raising interest rates to counter inflation, advising, "Central banks need to determine whether the inflation is due to strong demand or structural supply-side issues."

Director-General Okonjo-Iweala also hinted at plans to further lower the WTO's global trade growth forecast for this year.

In an interview with major foreign media on the same day, she said, "We are currently revising the trade growth forecast," adding, "All trade-related indicators point to a downward trend (in growth rate)."

The WTO had lowered its global trade growth forecast for this year from 4.7% to 3% in April. At that time, the trade growth forecast for next year was 3.4%.