Global trade growth to continue to slide in 2019: WTO

The interovernmental organisation, in September last year, predicted that the world merchandise trade growth will fall to 3.7 per cent this year down from 3.9 per cent in 2018.

The global trade growth is likely to slow down further in January-March period of 2019, the World Trade Organization (WTO) has said. 
 
The interovernmental organisation, in September last year, predicted that the world merchandise trade growth will fall to 3.7 per cent this year down from 3.9 per cent in 2018.
 
“These estimates could be revised downward if trade conditions continue to deteriorate," the WTO was quoted as saying, in its latest World Trade Outlook Indicator report released on Tuesday. 
 
“The simultaneous decline of several trade-related indicators should put policy makers on guard for a sharper slowdown should the current trade tensions remain unresolved."
 
As per report, there is likely to be “steep declines" in most indexes for export orders of air freight, automobile production, electronic components and agricultural raw materials. 
 
The report comes amid US-China bilateral talks to end the trade conflict.
 
US President Donald Trump has threatened to increase tariffs to 25 per cent on $200 billion worth of Chinese goods if negotiators are unable to forge an agreement by March 1.
 
Even, the International Monetary Fund (IMF), in its latest report last week, warned governments to gear up for a possible economic storm, with the world experiencing a dismal growth. 
 
“The bottom line — we see an economy that is growing more slowly than we had anticipated,” said IMF Managing Director Christine Lagarde at the World Government Summit in Dubai last week.
 
As per her, There are growth risks emanating from “trade tensions and tariff escalations, financial tightening, uncertainty related to (the) Brexit outcome and spillover impact and an accelerated slowdown of the Chinese economy.”

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