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WTO warns of global GDP loss through decoupling and fragmentation

云视网   2023-06-28 11:30:04


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Decouplingandfragmentationwillbecostlyfortheworld,saidNgoziOkonjo-Iweala,director-generaloftheWorldTradeOrganizationonTuesday.

"Ifwedecoupleintotwotradingblocks,itwillcosttheworlda5percentlossinglobalGDPinthelongerterm.TheIMFestimates(long-termcostoftradefragmentationcouldbeashigh)7percent(ofglobalGDP),"shetoldaforumonTuesdayduringthe14thAnnualMeetingoftheNewChampions,alsoknownastheSummerDavosForum.Theevent,themed"Entrepreneurship:TheDrivingForceoftheGlobalEconomy",runsfromTuesdaythroughThursdayinTianjin.

"That"slikesayingthatwelosetheequivalentofthewholeeconomyofJapan,whichwillbecatastrophicfortheworld,"sheadded."So,decouplingandfragmentationissomethingthattheworldsimplycannotaffordtohave."

Whenitcomestotheheadwinds,Okonjo-IwealasaidWorldBankresearchshowsthatthelong-termgrowthpotentialofbothdevelopedanddevelopingcountries,andemergingmarketeconomiesaredecliningduetosomestructuralfactorslikedemographics,callingformoreeffortstoharnessareaswherethereisproductivitygrowthandwhereyounglaborcanhelptheglobaleconomy.

Despitethechallengesahead,shestillseessomeopportunitiesinworldtradeincludingtherapidlygrowingdigitallydeliveredservicesandthegrowthpotentialingreentrade.

ouyangshijia@chinadaily.com.cn

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