New Delhi, Oct 30 (KNN) The global economy has not embraced decoupling but is showing signs of fragmentation, which would be “very costly” for all, World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala said on Sunday.

According to a report by Nikkie the WTO chief also sounded a warning on the potential impact of the war between Israel and Hamas, as well as the constant threat of climate change.

“The 2024 outlook is still relatively optimistic, with a projection of about 3.3% growth for goods trade, but the risks are heavily to the downside,” Okonjo-Iweala told Nikkei.

Global free trade has faced headwinds of revision since 2017, when U.S. President Donald Trump withdrew America from the Trans-Pacific Partnership. Under his successor, Joe Biden, the U.S. has sought to limit China's access to advanced technology in semiconductors and other areas, enlisting partners like Japan and some European nations in a strategy they call “de-risking.”

Okonjo-Iweala said the WTO does not see “big signs of a broader de-globalization.” The volume of trade in goods and services is “still quite substantial,” at about USD 31 trillion, and “even trade between China and U.S. and China and EU are still relatively robust,” she said.

Yet some of the emerging signs of fragmentation warrant caution, the WTO chief said. 

(KNN Bureau)