Daily Management Review

WTO notes pessimistic sentiments in global export


08/10/2018


Trade restrictions have already had a negative impact on the dynamics of world trade. Its growth in volumes may further slowdown in the third quarter of this year, according to the World Trade Organization (WTO) leading index. In July 2018, its value dropped to 100.3 points against 101.8 points in April. The value of 100 points is equivalent to growth in accordance with medium-term expectations, whereas higher values indicate wider expansion of trade rates. In the first quarter, the index line was below the actual growth in turnover, which also indicates a slowdown in growth, the WTO notes.



pixabay
pixabay
The main decrease in the index happened due to a reduction in the export orders (97.2 points), falling from the beginning of the year, as well as a decrease in the production and sales of cars (indicators that quickly react to the escalation of trade disputes). Turnover through container ports continued to expand (102.2 points), however it has already passed its peak growth, the WTO says. The subindex of sales of electronic components remains high (102.2 points), and the index of trade in agricultural raw materials returned to the trend line (100.1 points).

Recall that in the first quarter, world exports in monetary terms increased year on year by 14%, to $ 4.7 trillion, which was the highest increase since the end of 2011. In physical volumes, the increase was 3.7%, which was lower than the same period of January-March 2017 (plus 4.8%), when exports only began to recover.

According to the WTO forecast, by the end of the year the volume of trade will grow by 4.4% against 4.7% in 2017, and in 2019 will slow to 4% (calculated as the average rate of increase in imports and exports). At the same time, the WTO also points to the risks of a slower growth in supply in the event of a deterioration in business activity. So far, according to the data of the Chinese Ministry of Trade, even the largest round of restrictions (by $ 34 billion, introduced on July 6 at the same time by the US and China) had little effect on mutual supplies: exports from China to the US in July fell by 2.5% (month-to-month) while for the year the growth was 19%. Imports of US goods, in turn, fell by 1.5% (year-on-year, plus 16%).

source: wto.org






Science & Technology

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

Deloitte identifies main cyber threats for power industry

Zenuity To Take Self Driving Car Road Test In Sweden With Permission

Researchers: Half of Facebook users is fake

Amazon’s Ring gets in a privacy scandal

Facebook Is Creating A Stablecoin For Its WhatsApp Users

IBM offers to use the first quantum computer

Passport Numbers Of 5 Million Customers Hacked: Concedes Marriott

World Politics

World & Politics

AirHelp expects up to 33 th of cancellations and flight delays per day all over the world in 2019

Far-right and Catalonia: New elections in Spain

Trump is losing rating because of shutdown

Hanoi, Vietnam Chosen As Place For 2nd Summit Between Trump And Kim Jong-Un

US, China to hold new negotiations in Beijing

Human Rights Not To Be Dissociated From Stability, Macron Tells Sisi

Brexit Hijack Is Not The Parliament’s Right

Macedonia ignites political crisis in Greece