Forecasts from the World Bank slashed, they are citing the impacts of trade wars.
Media statement:
- 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.
More:
- 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). Kaplan the latest. Wake up dude, smell the coffee.
