The head of the World Trade Organization (WTO) warned on Wednesday that several major economies face a real risk of sliding into recession as the war in Ukraine, rising food and fuel costs, and soaring inflation cloud the global outlook.
‘It may not happen everywhere, but several key countries risk sliding into recession,’ WTO Director-General Ngozi Okonjo-Iweala told Reuters on the side-lines of the G-20 leaders’ meeting in Bali, Indonesia.
‘Of course, the impact of that can be quite significant for emerging markets and poor countries, which need external demand from the developed countries to recover.’
The Geneva-based trade body last month projected global trade to rise just 1.0% in 2023, down sharply from an estimated 3.5% rise for this year.
‘There are so many uncertainties and most of the risks are on the downside,’ such as the fallout from the war in Ukraine and headwinds from inflation, she noted.
