The Chief of the World Trade Organization stated that she believes a global recession is imminent as a result of several interlocking crises and demanded dramatic measures to resurrect the economy.
According to WTO Director-General Ngozi Okonjo-Iweala, the circumstances for a global recession are being set by Russia’s conflict in Ukraine, the climate catastrophe shocks to food and energy prices, and the effects of Covid-19.
She stated at the start of the annual public conference of the international trade organization in Geneva that “now we have to weather what looks like an incoming recession.”
Okonjo-Iweala said that we cannot afford to do business as usual. We have security shocks, climate shocks, energy shocks, and food price shocks all striking countries simultaneously.
She emphasized the necessity for central banks to ascertain if high demand is causing inflation or whether the increase in prices is related to structural issues on the supply side.
Okonjo-Iweala stated that access to energy and ensuring food security were her top concerns.