01/12/2024 – 14:38
The director general of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, highlighted this Friday, the 12th, that the world will lose around 5% of the global Gross Domestic Product (GDP) – the equivalent of Japan's economy – if the trend of trade fragmentation continues. The number was stipulated by WTO analysts last year, however, it remains a risk for the economy, recalled the authority.
“Our aggregate data compilation in 2023 still has a lot of noise and is not clear for definitive analysis, but we are seeing increasing signs of fragmentation that could be very harmful for the world,” said Ngozi.
Among these signs, the director highlighted as an example the trade between China and the United States, already in a state of decline, and the faster growth of transactions between like-minded countries.
For her, this stance would mean going against the values on which the structure of international trade should be based, ignoring the structure of “free trade and absence of protectionism”. “In addition, we would be signing a sentence for emerging markets, preventing their development,” she pointed out.
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