After the recent statistics, unfortunately, World Trade Organisation cuts its forecasts. Year by year, the growth is going slower, and it seems that the trade growth in 2018 and 2019 is worse and will be even more slower due to the continuous decisions of the president of the united states of America, Donald Trump.
So far, things seem to be still under control, and the direct economic effects of the trade war are still acceptable. So why World Trade Organisation cuts its forecasts?
Here, we should inform that after imposing tariffs on the imports of China which pushed the Asian giant to do the same on the American imports. Then he also by
Trump has also introduced extra taxes on some outside imports like aluminium and steel.
According to the last statistics made by The WTO, their trade in goods would grow by 3.9 percent this year. This number is not actually accepted as it is less than the 4.4 percent it predicted in April.
Furthermore, they are expecting a trade growth of 3.7 percent next year, hence a cut from the WTO’s previous forecast of four percent.
In a statement declared by the organisation itself, most of the downside risks which it warned of in April had now materialised, and are the reasons behind these changes.