The World Trade Organization said Tuesday (2.4.2019) that global trade contracted by 0,3% in the fourth quarter of 2018 and is likely to expand by 2,6% this year, a slower pace than previously anticipated.
In its outlook report for the year, the WTO said trade had been hit by the imposition of new tariffs and subsequent retaliatory measures, weakening economic growth, volatility in financial markets and a tightening of monetary conditions in developed countries.
The agency had forecast in September that growth in 2018 would be 3,9%, compared with 4,6% in 2017.
"With trade tensions rising, no one should be surprised by this outlook. Trade cannot play its full role in driving growth when we see such high levels of uncertainty," WTO Director-General Roberto Azevedo said in a statement.
"Of course there are other elements at play, but the rise in trade tensions is the main factor", the official added at a press conference. “I think it’s pretty obvious that tensions between the United States and China play a big role.”
Meanwhile, the WTO's chief economist said on Tuesday that Washington's imposition of tariffs on car imports would have a bigger impact on the global economy than the trade war between the United States and China, while a no-deal Brexit could also have a negative impact.
"I think it's pretty clear that any tariff on cars is likely to have a bigger impact on the global economy than what we're seeing in the US-China conflict," Robert Koopman told reporters.
Source: Reuters
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