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The world economy is heading towards recession

World Trade Organization (WTO) Director General Ngozi Okonjo Iweala stated that the indicators are not good and that the world economy is heading towards recession due to the crises. The WTO is expected to revise its growth expectations in trade downwards next month.

The world economy is heading towards recession

Ngozi Okonjo Iweala, Director-General of the World Trade Organization, was the last person to share his pessimistic views on the global economy.

"The indicators are not good," Iweala said, adding that the war in Ukraine, the climate crisis, food prices and energy shocks are approaching a global recession. Speaking in Geneva, Iweala said: "Now we have to fight the impending recession. I think we are heading towards a recession. We have to rekindle growth."

Iweala, who is also the former Nigerian Finance Minister, stated that they focus on food security and energy accessibility issues triggered by Russia's invasion of Ukraine. Expressing his concerns about food security, Iweala said, "The thing that worries me the most is the possibility of famine. Access to energy is also causing problems at the moment."

Iweala stated that inflation especially hits the poor and global Central Banks have no choice but to raise interest rates.

The WTO is expected to revise its 2022 trade projections downwards next month. In April, the institution lowered its 2022 growth expectation for global goods trade from 4.7 percent to 3 percent.

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