On Tuesday, the 23rd of July, officials of International Monetary Fund, the sister-organization of World Bank, said that during the first quarter of 2019, global trade grew only by 0.5 percent, a level never seen since 2012, while the IMF officials had also raised alarms of further significant slowdown risk citing that a flurry of geopolitical tensions, unresolved trade disputes between US and China alongside a potential conflict of interest between Brussels and Washington over added tariff on industrial goods were eclipsing global trade outlook further.
Aside from that, on Tuesday (July 23rd), IMF had downsized its global growth forecast for this year and the next, adding that a flurry of unfathomable trade frictions across the world could slow down global growth, disrupt supply chains and soften investments.
Concomitantly, deputy director for the global lender’s research department, Gian Maria Milesi-Ferretti had been quoted saying in an interview with a press agency on Tuesday (July 23rd) following another slash of its yearly projection of global trade growth that the outlook of global trade was brutally battered following an escalation of Sino-US trade war, which had also stemmed a vicious cycle of weaker corporate investment, while IMF chief economist, Gita Gopinath told to the reporters that she did not see signs of recession in a near-term outlook, but, “significant downside risks” had been hammering down trade sentiments.
Adding that the end of 2018 had been an entire evisceration for global trade, Milesi-Ferretti said, “You have a combination of factors at play here, some of which are of a temporary nature and some of which may be a sign of a more significant slowdown. When investment slows in China it shows on the global radar screen”.