New Delhi, Oct 13 (KNN) World Trade Organization’s (WTO) Chief Ngozi Okonjo-Iweala has warned that Israel-Hamas conflict could have a “really big impact” on already weak global trade flows if it widened throughout the region.

Hoping the Israel-Hamas conflict could be ended quickly, Okonjo-Iweala made this statement while she in Morocco to attend this week's annual meetings of the International Monetary Fund and World Bank.

“Middle East violence could add to factors throttling trade growth, including higher interest rates, a strained Chinese property market and Russia's war in Ukraine,” said the chief.

“We hope this ends soon and it's contained. Our biggest fear is if it widens, because that will then have a really big impact on trade,” she said in an interview. “Everybody's on eggshells and hoping for the best,” she added.

Okonjo-Iweala said global uncertainty was already limiting growth in trade, but that would be exacerbated by the sudden onset of war between Israel and the Islamist Hamas group that controls the Gaza Strip.

The Geneva-based trade body last week halved its growth forecast for global goods trade this year, citing persistent inflation, higher interest rates, the slowing Chinese economy and the war in Ukraine.

The WTO said merchandise trade volumes would increase by just 0.8% in 2023, compared with its April estimate of 1.7%.

For 2024, it said goods trade growth would be 3.3%, a forecast virtually unchanged from its April estimate of 3.2%.  (KNN Bureau)