Trade conflict – an increasing threat to global growth
Trade tensions are rising around the world. As they threaten to become even more pervasive, the global growth outlook has darkened. UN DESA’s September Monthly Briefing warns that the protracted high trade tensions are visibly affecting global economic activity.
In tandem with slowing industrial production, world trade growth has decelerated sharply over the past year. In many countries, there are signs that the deterioration in business confidence has started to dent investment growth. In response to slowing economic activity, central banks across the global have eased monetary policy
Given inconclusive trade negotiations, there is a growing risk that trade tensions will further intensify, triggering protectionist measures by other countries. Amid constrained macroeconomic policy space, this could derail global growth and reverse progress on the 2030 Agenda.
The inaugural SDG Summit, which will be held later this month, presents a valuable opportunity for world leaders to engage in productive dialogue and discuss strategies to address the current global economic challenges, including a strengthening of the rules-based multilateral trading system.
For more information: September Monthly Briefing on the World Economic Situation and Prospects
Photo: Jonathan Ernst/World Bank