The ongoing tensions in the red Sea caused by Yemen's Houthi rebels' recurrent attacks on merchant ships have a negative impact on the global supply chain and would result in a $10-20 increase in oil prices for oil-importing countries such as india, potentially harming the country's economy, according to World Economic Forum (WEF) president Borge Brende.
In an exclusive interview with india Today TV/Business Today news Director rahul Kanwal, Brende warned that the closing of the Suez Canal would harm the global supply chain and expressed optimism that the Houthi attacks in the region would end soon. He made the statements as the 54th annual World Economic Forum (WEF) gathering begins today in Switzerland's scenic city of Davos. During the discussion, Brende said that trade growth fell to 0.8% last year, down from 3.4% the previous year. He did, however, express confidence that global commerce will "pick up a bit" this year, despite the red Sea situation.
"But it doesn't take much to have a negative impact if we seal the red Sea. Closing the Suez Canal for weeks will have a significant detrimental impact on the global supply chain. So much is at risk. We also know that this has an influence on oil prices, particularly in major oil-importing nations such as india, where a $10-20 increase in oil costs would have a significant negative impact on the economy," he added. "So, I hope that this will not escalate further and that shipping can reconvene as usual in the red Sea in a few days," he said.
In an exclusive interview with india Today TV/Business Today news Director rahul Kanwal, Brende warned that the closing of the Suez Canal would harm the global supply chain and expressed optimism that the Houthi attacks in the region would end soon. He made the statements as the 54th annual World Economic Forum (WEF) gathering begins today in Switzerland's scenic city of Davos. During the discussion, Brende said that trade growth fell to 0.8% last year, down from 3.4% the previous year. He did, however, express confidence that global commerce will "pick up a bit" this year, despite the red Sea situation.
"But it doesn't take much to have a negative impact if we seal the red Sea. Closing the Suez Canal for weeks will have a significant detrimental impact on the global supply chain. So much is at risk. We also know that this has an influence on oil prices, particularly in major oil-importing nations such as india, where a $10-20 increase in oil costs would have a significant negative impact on the economy," he added. "So, I hope that this will not escalate further and that shipping can reconvene as usual in the red Sea in a few days," he said.
'INDIAN ECONOMY TO GROW AT 8%'
Borde voiced optimism about the indian economy, which is predicted to rise around 8% this year. "We think, in the coming decade, we can be speaking about a $10 trillion economy, at least in the coming two decades," he went on to say.
The WEF chairman praised India's economic narrative, noting that the country's wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital economy was developing twice as fast as the rest of the economy. "The wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital economy and service exports have propelled india to the forefront. This is a very lovely place for India. However, changes must continue in India. Reforms in education, finance, and reducing superfluous red tape should continue. "I believe there is an understanding of all of these issues in New Delhi," Brende added.
The WEF chairman praised India's economic narrative, noting that the country's wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital economy was developing twice as fast as the rest of the economy. "The wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital economy and service exports have propelled india to the forefront. This is a very lovely place for India. However, changes must continue in India. Reforms in education, finance, and reducing superfluous red tape should continue. "I believe there is an understanding of all of these issues in New Delhi," Brende added.