WTO Predicts Weak Growth for Trade in 2019

GENEVA — World trade volume in goods will grow by a weak 2.6 percent in 2019, down from 3 percent in 2018, largely due to rising trade tensions between the United States and China, a range of tariff hikes, and increased economic uncertainty, the World Trade Organization said Tuesday. “Trade cannot play its full role in driving growth when we see such high levels of uncertainty. It is increasingly urgent that we resolve tensions and focus on charting a positive path forward for global trade,” said Roberto Azevêdo, WTO director-general. The WTO chief said “greater uncertainty means definitely lower levels of investment and consumption. Investment, in particular, has a pronounced impact on trade…continued uncertainty would continue to lower investment, and if you lower investment, you will depress trade figures.” Asked about the effects of a trade war, Azevêdo said “the whole world loses,” and noted the net effect for the world economy and for consumers “is negative across the board.” In 2018, the value of global trade in goods rose by 10 percent to $19.48 trillion, with China delivering a 10 percent increase to $2.48 trillion, followed by the U.S. with an 8 percent increase to $1.66 trillion and Germany with an 8 percent

Follow WWD on Twitter or become a fan on Facebook.

Read More...

from WWDWWD https://ift.tt/2CSoIN1