Ngozi Okonjo-Iweala, Head Of The WTO, Has Expressed Concern About A Potential Economic Downturn

World Trade Organization Director-General Ngozi Okonjo-Iweala stated on Tuesday in Geneva, “the indicators are not favorable.” They are preparing for a global slump.

This month, the World Trade Organization (WTO) is projected to reduce its predictions for global trade growth in 2022. The yearly growth rate in merchandise trade fell from 4.75 percent to 3 percent, as reported by the World Trade Organization in Geneva.

The Paris-based OECD and Geneva’s WTO have recently lowered their growth projections for the G20 for the coming year in light of recent events. Both of these communities may trace their roots back to France.

Okonjo-top Iweala is a firm believer that her nation must have unrestricted access to clean power and nutritious food at all times. Both of these issues have rapidly worsened since Russia invaded Ukraine. Okonjo-Iweala has worries, such as food shortages.

My primary concern with the current food supply is the growing likelihood of a global famine. There is a significant and imminent lack of effective substitutes for traditional energy sources.

On Tuesday, the director of the World Trade Organization predicted that several related issues would bring the global economy to a halt.

Trade indicators are “not looking exceptionally positive,” Ngozi Okonjo-Iweala, head of the World Bank and the International Monetary Fund, said at the World Trade Organization’s annual public meeting in Geneva.

Food, gas, and energy prices have all risen as a result of the international recession brought on by Covid-19 and the ongoing crisis between Russia and Ukraine.

The state of the international economy may worsen. In my opinion, doing nothing is the safest choice. Because of this, we need to always be ready for a shift in our luck. Okonjo-Iweala places a high priority on the nation’s economic health.

According to Nigeria’s former finance and foreign minister, these shocks “strike countries simultaneously,” underscoring the need for new policies to encourage growth.

She voiced concern that central banks wouldn’t be able to prevent “serious” impacts on developing countries and rising economies.

The Director General of the World Trade Organization (WTO) has called for an investigation into inflation, noting the need of ensuring that all people have access to basic services like food and energy.

An imminent economic recession was predicted by the World Bank, and on the following Friday, European stock markets crashed catastrophically. Fresh warnings have also been issued by the World Trade Organization (WTO).

According to the head of the World Bank, the European economy will be in a slump for some time.

Recent Reports From Several Media Outlets Suggest That:

As a result, the FTSE 100 in London fell by 1.9%, the CAC in France fell by 1.1%, and the DAX in Germany fell by 1%.

The president of the World Bank, David Malpass, has warned Western countries that the fallout from Russia’s invasion of Ukraine might be severe.

He was correct in his assessment that the energy crisis will make stagflation persist for longer than previously thought.

The former head of the Bank of England, Mark Carney, has publicly criticized the current British government for what he calls its “undercutting” of financial firms.

According to him, the federal government is “opposed” to the Federal Reserve, and the Congressional Budget Office has no idea what the future holds (OBR).

He didn’t think it was strange that I was interested in the budget’s statistics, saying, “I don’t grasp why it sounds funny that you want to know the Budget’s facts.” He went on to explain that it is vital to understand the underlying assumptions.

It’s totally up to you if and how much you believe their statements. You should take a well-reasoned position and, dare I say it, be unbiased. Our preliminary experimental results have given us the reason for optimism.

On the day following the Bank of England’s efforts to calm markets, bond yields in the United Kingdom fell.

On Wednesday, long-term bond yields decreased by more than a percentage point, but they have since partially recovered. How much it will cost the government to borrow money can be determined with certainty by the interest rate.

Futures contracts for the S&P 500 and Dow were trading down 1.2% and 1.5%, respectively, while futures contracts for the Nasdaq were trading down 1.5%.

When the Bank of England decided to keep buying bonds to maintain the value of the pound, it saw a positive reaction from Asian stock markets the next day.

Both the Shanghai Composite and the Hang Seng dropped by 0.1% and 0.8%, respectively. The Nikkei 225 index that tracks the stock market performance of Japanese companies gained about one percent in Tokyo.