GENEVA: The head of the WTO said on Tuesday she believed the world was entering a global recession due to a series of clashing crises. and called for harsh policies to revive growth.
WTO director Ngozi Okonjo-Iweala said Russia’s war in Ukraine climate crisis Vibrating food and energy prices Plus the aftermath of the Covid-19 pandemic is creating conditions for a global recession.
“Right now we have to get through what looks like an impending recession,” she said at the opening of the World Trade Organization’s annual public meeting in Geneva.
“I think the global economy is in recession. That’s what I think we’re getting close to. but at the same time We have to start thinking about recovery. We have to restore growth.”
She noted that the World Bank and the International Monetary Fund had lowered their global growth forecasts. while the indicator trade numbers “It doesn’t look too good”
Okonjo-Iweala He added: “We have a security system. we have global warming we have electric shock We have low food prices. and all affected countries at the same time. Therefore, we cannot do business as usual.”
The former Nigerian Finance and Foreign Minister said the central bank was in a tight spot with no options going forward.
“Central banks have no choice but to tighten and raise interest rates — but the impact on emerging markets and developing countries is quite severe. Because they raise interest rates as well,” she said.
“But what is happening in developed countries? affect their debt burden. Affects what they have to pay to pay off their debts. Affects driving capital out of their economies back to developed countries.
“But right now, I don’t think there’s much choice. But for the central bank to do it because inflation hits the poor severely.”
She stressed the need for central banks to determine whether inflation is driven by strong demand or whether price increases are linked to structural problems on the supply side.
Okonjo-Iweala Says her top concern is ensuring food security, followed by access to energy.
“Lack of food is what worries me,” she said.