The world of global trade is facing a turbulent future, with geopolitical tensions, trade wars, and economic uncertainty casting a shadow over the industry, experts warned at a recent event in Athens.
The Economist's "World in 2025" event brought together leading figures in economics and shipping to discuss the challenges and opportunities facing global trade in the coming years. The panel discussion quickly turned to the volatile geopolitical landscape, highlighting conflicts such as the war in Ukraine, tensions in the Middle East, and the threat of piracy in key shipping lanes.
Shipping executives Angeliki Frangou and Evangelos Marinakis emphasized the critical need for stability in regions like the Red Sea, noting that ongoing conflicts and the potential for terrorist attacks pose significant risks to maritime operations. While acknowledging recent truces and agreements, they stressed the importance of reliable assurances for safe passage in these crucial waterways.
The conversation also touched on trade tensions and the potential for increased tariffs. Experts expressed concern about the potential for such measures to disrupt global supply chains, stifle economic growth, and fuel inflation. One economist pointed to historical examples of how protectionist policies have negatively impacted international trade.
While some participants expressed cautious optimism about the resilience of global demand for essential goods, the overall sentiment was one of uncertainty. Concerns were raised about the potential for economic slowdowns in Europe, with some highlighting a perceived lack of strong leadership in addressing economic challenges. However, there was also optimism expressed about the economic prospects of specific regions, such as Greece, where tourism and real estate are seen as potential drivers of growth.
The experts underscored the complex relationship between global trade, geopolitics, and economic policy, emphasizing the need for careful navigation of these interconnected challenges to ensure a stable and prosperous future for international commerce.