WTO chief warns on 'very costly' fragmentation of global economy

War between Israel and Hamas is potential impact, Okonjo-Iweala points out

If the world decoupled into two trading blocs, the fall in global GDP would be like "losing the whole of the economy of Japan," said WTO Director-General Ngozi Okonjo-Iweala. (Photo by Shigeru Seno)

SHIGERU SENO, Nikkei senior staff writer

October 30, 2023 10:24 JST

OSAKA -- The global economy has not embraced decoupling but is showing signs of fragmentation, which would be "very costly" for all, World Trade Organization Director-General Ngozi Okonjo-Iweala said on Sunday.

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.