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WTO Chief Sees World Economy Edging Into a Recession

This content was published on September 27, 2022 - 09:52

(Bloomberg) --

The head of the World Trade Organization added her voice to a growing chorus of observers who see the global economy headed into a recession. 

“The indicators are not looking good,” WTO Director-General Ngozi Okonjo-Iweala said during an interview in Geneva Tuesday. “I think a global recession -- that is what I think we are edging into.”

Next month, the WTO is expected to slash its trade growth projections for 2022. In April, the Geneva-based trade body lowered its projection for growth in merchandise trade this year to 3%, from its previous projection of 4.7%. 

The WTO’s bearish expectations for the global economy come after the Paris-based OECD cut its growth forecasts for the Group of 20 next year. 

Okonjo-Iweala said she is most focused on the issues of food security and access to energy -- both issues that have been aggravated by Russia’s invasion of Ukraine. 

“I am very concerned about food security,” Okonjo-Iweala said. “The specter of not having enough food is one that worries me. Access to energy is creating problems at the moment.”

©2022 Bloomberg L.P.

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