Leader of World Economic Forum talks over predictions of global economy, geopolitical challenges
Date
2/28/2024 2:39:01 AM
(MENAFN) Borge Brande, the President of the World Economic Forum, shared insights on the current state of the global economy, noting a slight improvement compared to recent months. Speaking to "Sky News Arabia" during the thirteenth ministerial meeting of the World Trade Organization in Abu Dhabi, Brande expressed optimism regarding global economic growth, with expectations that it will surpass 3 percent this year. He highlighted the robust performance of the United States economy, which has allayed previous concerns of a potential recession or soft economic landing.
However, Brande cautioned against overlooking geopolitical risks that could undermine economic stability. He emphasized that any escalation in regions such as the Middle East, Gaza, or Ukraine could significantly disrupt trade and economic growth globally, leading to a challenging landing rather than a smooth transition. Brande underscored the importance of finding solutions to geopolitical tensions, even if temporary, to mitigate their adverse effects on economic prospects and international trade.
Addressing recent events in the Red Sea, Brande described the attacks by Houthi militants on ships in the region as a serious concern. He highlighted the damage caused to the Egyptian Suez Canal, noting that Egypt suffers annual losses of approximately USD5 billion due to decreased revenues from the canal. The implications of such disruptions extend beyond the immediate economic impact, affecting global trade routes and posing challenges for maritime transportation.
Brande's remarks reflect a nuanced understanding of the interconnectedness between geopolitical developments and economic performance, underscoring the need for proactive measures to address uncertainties and safeguard global economic stability.
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