World trade down? WTO: Sun 3 percent growth, and 0.2 percent of the inheritance

The World Trade Organization (WTO) reported on Wednesday that due to the customs war, world trade in goods will not increase in 2025, as forecasted, by 3 %, but it will shrink at least 0.2 percent. – said the Reuters agency.

If, however, the maximum, currently suspended by the US President Donald Trump, are being suspended, the global trade in goods can decrease by up to 1.5 percent. – predicts the organization. This would be the largest decrease from time caused by a pandemic of collapse in international trade.

“I am very concerned” by this situation – the Director General of the WTO, NGOZI Okonjo -Iweala told journalists.

The Reuters agency reminded that the US president imposed both duties on the import of steel and cars, as well as the wide global duties before he unexpectedly suspended them in relation to several countries. In the case of China, mutual duties currently exceed 100 percent.

According to the WTO, trade in services will increase, although less than the organization forecasted last year.

“If we are dealing with the shrinking of trade in goods, you can worry about the increase in GDP. Trade problems may have a negative impact on financial markets and other areas of the economy,” added Okonjo -Iveala.

As the head of the WTO said, her greatest fear is that China and the US economies are separated from each other. According to the organization, trade between these countries will fall by 81 percent, and if it was not released in recent days from the duties of products such as smartphones, the decline could reach up to 91 percent. In the assessment of Okonjo-Iveali, the disconnection of US and China economies “could have far-reaching consequences if, as a result, there were fragmentation of a global economy along the geopolitical borders of two isolated blocks of blocks.” In this case, the global GDP could shrink the long -term perspective by 7 percent.

“The unprecedented nature of recent changes in commercial policy means that forecasts should be interpreted with more caution than usual,” WTO warned.

Reuters reminded that also on Wednesday, the United Nations Conference on Trade and Development (UNCTAD) warned that tensions in global trade and uncertainty in uncertainty drive a recession trend. UNCTAD decided that global economic growth can slow down to 2.3 percent. (PAP)

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