World edging into ‘global recession’

The world is heading towards a global recession due to multiple colliding crises, said the World Trade Organisation’s (WTO) Chief Ngozi Okonjo-Iweala.

Russia’s war in Ukraine, the climate crisis, food price and energy shocks plus the aftermath of the Covid-19 pandemic were creating the conditions for a world recession, she said. “Now we have to weather what looks like an oncoming recession,” she told the opening of the global trade body’s annual public forum in Geneva.

“I think a global recession. That’s what I think we are edging into. But at the same time, we have to start thinking of recovery. We have to restore growth.” She noted that the World Bank and the International Monetary Fund had both downgraded global growth forecasts, while indicators on trade numbers were “not looking too good”.

“We have security shocks, we have climate shocks, we have energy shocks, we have food price shocks, and all of this is hitting countries at the same time, so we cannot afford to do business as usual,” added Okonjo-Iweala.

The former Nigerian finance and foreign minister said central banks were in a tight spot, with little choice over the course ahead.

Published in The Express Tribune, September 28^th, 2022.

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