(23 January 2024 – Switzerland) The World Trade Organisation (WTO) is less optimistic about world trade in 2024, lamenting rising tensions in the Red Sea.
Before the outbreak of war in Gaza, the WTO predicted trade would grow by 0.8 percent in 2023 and projected growth of 3.3 percent in 2024. Weaker global economic growth, worsening geopolitical tensions, new disruptions in the Red Sea, Suez Canal and drought impacts on the Panama Canal have contributed to the the international trade body becoming markedly less optimistic.
Attacks by Yemeni Houthi rebels on Red Sea shipping have significantly disrupted the vital trade route while the worst drought in decades to hit the Panama Canal has forced authorities to limit transits.
“The trade forecast figure for 2024 will now be lower in future forecasts. We think there are a lot of downside risks to the forecasts we had made last year of 3.3 percent growth of merchandise volumes this year. So, we expect weaker performance. We will be revising estimates for this year, but they won’t be ready for another month or so” commented WTO Chief Ngozi Okonjo-Iweala.