GENEVA, January 23. /TASS/. Global GDP losses as a result of tit-for-tat measures of other countries against tariffs to be introduced by US President Donald Trump can be double-digit by size and catastrophic for the global economy, WTO Director-General Ngozi Okonjo-Iweala said at the World Economic Forum in Davos.
“We’ve done the numbers. If we have tit-for-tat retaliation [against possible US tariffs], whether there is 25% to 60%, and we go to where we were in 1930s, we’re going to see double-digit global GDP losses,” she said. “That’s catastrophic. Everyone will pay. And poor countries would pay the more,” the WTO Director-General stressed.
She also portrayed the second possible scenario where the world is divided in two trading blocs. “If we break in two trading blocks, we’re going to lose 6.4% of real global GDP in the longer term. It is like losing the economy of Japan and South Korea combined,” she added.
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