By Beyza Binnur Donmez
GENEVA (AA) - The global economy faces heightened risks as key maritime chokepoints, including the Suez and Panama Canals, face increasing disruptions from climate change, geopolitical tension and conflicts, warned a new report from the UN Conference on Trade and Development (UNCTAD) on Tuesday.
The report said that these crucial arteries of global trade are under pressure, threatening supply chains and particularly impacting vulnerable economies.
According to the report, maritime trade, which grew by 2.4% in 2023, is projected to see a modest 2% growth in 2024. However, deeper concerns persist.
Container trade, which grew by just 0.3% last year, is expected to rebound by 3.5% in 2024. Yet, the ongoing disruptions at chokepoints like the Panama and Suez canals cast a shadow on future growth prospects.
The report highlights the severe impact on Small Island Developing States (SIDS) and Least Developed Countries (LDCs), which are heavily reliant on maritime trade for essential goods.
The analysis suggested that continued disruptions could raise global consumer prices by 0.6% by 2025, with SIDS potentially seeing price hikes of up to 0.9%.
It underlined the need for urgent action "to strengthen the resilience of maritime chokepoints, infrastructure and operations, promote low-carbon shipping and combat the growing problem of fraudulent ship registrations."