Okonjo-Iweala warns of a “global recession”

The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, warned that the world is on the verge of a “global recession” at a time when it is facing multiple crises.

Agence France-Presse quoted Okonjo-Iweala as saying today at the opening of the organization’s annual general forum in Geneva: that expectations had previously indicated a recovery in the post-Corona epidemic, but now we must face signs of an upcoming recession, stressing that it is a “global recession.”

She added: “I think this is what we are heading towards, but at the same time we have to start thinking about recovery and we have to return to growth,” noting that “the situation is very difficult because the world is facing multiple crises, including insecurity, climate shocks and high food prices, which are simultaneous external shocks.” It puts the world in a vulnerable position.”

She stressed the importance of central banks determining whether inflation is caused by strong demand or structural causes on the supply side, warning that if it is related to supply-related factors that cannot be controlled, then continuing to increase interest rates will have the opposite effect.