The World Trade Organization’s chief Ngozi Okonjo-Iweala on Wednesday (Jan 17) said she was “less optimistic” about world trade in 2024, pointing to tensions in the Red Sea.

The head of the international trade body said weaker global economic growth, “worsening geopolitical tensions, the new disruptions we see in the Red Sea, on the Suez Canal, the Panama Canal” meant “we are less optimistic”.

She was speaking to journalists at the World Economic Forum in the Swiss resort of Davos where political and economic elites are meeting to discuss global challenges.

Before the massive Hamas attack on Israel in October and the subsequent outbreak of war in Gaza, the WTO had predicted trade would grow by 0.8 per cent in 2023 and projected growth of 3.3 per cent this year.

But Okonjo-Iweala warned the figure for 2024 would 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 per cent of growth of merchandise volumes this year. So we expect weaker performance,” she said.

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“We will be revising estimates for this year, but they won’t be ready for another month or so,” Okonjo-Iweala added. AFP