World Bank cuts global growth forecast for 2019 to 2.6%
In light of numerous factors pertaining to escalated trade tensions around the globe in recent months, the World Bank on Tuesday slashed its global growth forecast for 2019 to 2.6 per cent as opposed to 2.9 per cent announced in January this year.
The semi-annual forecast data released by the World Bank on Tuesday suggests that the global trade growth in 2019 would be the weakest since the 2008 financial crisis, after being revised down a full percentage point, to a mere 2.6 per cent.
“Global growth in 2019 has been downgraded to 2.6 per cent–0.3 percentage point below previous projections–reflecting the broad-based weakness observed during the first half of the year, including a further deceleration in investment amid rising trade tensions,” the report read.
“In particular, global trade growth in 2019 has been revised down a full percentage point, to 2.6 per cent–slightly below the pace observed during the 2015-16 trade slowdown, and the weakest since the global financial crisis.”
Washington and Beijing have been locked in a trade dispute since the beginning of this year. The two countries have imposed tariffs on hundreds of billions of dollars of each other’s imports.
United States President Donald Trump has alleged that Beijing is ripping off U.S. consumers and businesses by unfairly subsidising Chinese companies, stealing intellectual property from American firms, and flooding global markets with cheap goods to put other companies out of business.
The International Monetary Fund (IMF) had recently predicted that trade tensions between the two countries will subtract about 0.3 per cent of the global GDPs
In addition, Trump recently threatened to impose five per cent tariff on all goods coming in from Mexico to the US. The first round of tariffs would begin on June 10, and would go up to 10 per cent by July, 15 per cent by August and so on till 25 per cent if, the US says, Mexico does not step up its enforcement actions. (ANI)