IMF chief calls for “don’t disconnect trade”
German Chancellor Olaf Scholz held a press conference after a speech by IMF Director Kristalina Georgieva and World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala.
IMF Managing Director Kristalina Georgieva told a joint news conference that globalization faces its biggest challenge since World War II, following the Covid-19 pandemic and the Russia-Ukraine war.
DO NOT DISCONNECT TRADE
Georgieva warned against the negative impact of the reversal of globalization on the economy. Proposing to diversify supply chains, Georgieva says: “Don’t disconnect the trade that takes us all further.” he said.
Georgieva also reported that the IMF forecasts a gradual decline in rising inflation rates, which rise with energy and food prices, in 2023.
Emphasis on INTERNATIONAL COOPERATION
German Chancellor Olaf Scholz, for his part, stated that segregation is not a solution to global problems and called for increased international cooperation in the face of crises in the world.
“Only together can we overcome great challenges,” said Scholz. he said.
Emphasizing that reversing globalization and trade protectionism will not bring solutions to global problems, Scholz argued that what is needed is “smart globalization” in which dependencies are reduced.
Explaining the effects of the Covid-19 epidemic on the global economy and supply chains, Scholz said that the war between Russia and Ukraine has effects all over the world in terms of the economy, food and energy security.
LNG AGREEMENT WITH QATAR
Schoz said that the agreement that will allow Qatar to export liquefied natural gas (LNG) to Germany for 15 years was signed today.
Emphasizing that the agreement is very important for Germany, Scholz said: “The LNG supply agreement with Qatar is a sign that Germany has many different countries to apply to provide secure energy sources.” he said.
Olaf Scholz also added that Germany’s offer to supply Poland with Patriot missile defense systems for air defense is not ruled out.
WTO TRADE WAR WARNING
The Director General of the WTO, Ngozi Okonjo-Iweala, reported that the WTO estimates that dividing the world economy into two trading blocs will reduce world gross domestic product by 5 percent in the long term. (AA)