World trade is likely to be slump by 1.5 per cent, says German FED Chair

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World trade is likely to be slump by 1.5 per cent, says German FED Chair

On Friday, 18th of October 2019, the German Federal Reserve Chairman, Jes Weidmann, said at the latest IMF (International Monetary Fund) meet in Washington that the dampening effects of tariff war over multiple fronts of the world had escalated further over the recent weeks, as aside from an additional tariff between the US and China, another US tariff hike on up to $7.5 billion worth of European goods would likely to take place next week.

Aside from that, referring to further strains on to global economy, the 51-year-old former IMF official had also been quoted saying on Friday (October 18th) at an IMF meet in Washington that the latest escalation of Sino-US tariff war with added levies on each other’s production would be depressing growth of the two of the largest economies in the world by more than 0.75 per cent in a medium-term outlook, while the global trade would likely to be toiled by more than 1.5 per cent.

Meanwhile, followed by the Friday’s (October 18th) IMF meet in Washington, referring to an intensifying Brexit chaos which had been fanning the flames of slowdown frets further, German Federal Reserve Chair Weidmann alongside German Finance Minister Olaf Scholz said at a joint press conference, “We would feel it immediately.

But the uncertainty must go away. Companies are investing. "They postpone their decisions. ” More importantly, latest comments of German Finance Minister Scholz came forth a few days after the German Federal Government had downsized its full-year growth projection for 2020 to 1.0 per cent.