WTO chief sees world economy edging into a recession

Geneva: 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 per cent, from its previous projection of 4.7 per cent.

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 attack on Ukraine.