Forecasts from the World Bank slashed, they are citing the impacts of trade wars.
- There’s been a tumble in business confidence
- a deepening slowdown in global trade
- and sluggish investment in emerging and developing economies
This is worrisome because subdued investment weakens the foundations for sustained growth.
The previous growth forecast from the bank was in January, a sluggish 2.9%
- this June update is worse at 2.6%
- All six global regions, East Asia and the Pacific; Europe and Central Asia; Latin America and the Caribbean; Middle East and North Africa; South Asia; and sub-Saharan Africa have lower forecasts.
Oh, and the forecasts do not incorporate US threats to up tariffs on China to 25% nor last week’s threats of up to 25% tariffs on Mexico. Awesome.
- global economy’s growth will be the weakest since 2016
- trade growth on track to be the weakest since the GFC
- other factors – financial market stresses, suboptimal business environments in many countries, and economies that were already slowing because of cyclical factors
Meanwhile, we get policy makers expressing the four letter word (hope).