WTO slashes global trade growth forecast for 2019 to 2.6% from 3.7%

WTO, 올해 무역 성장률 2.6% 전망…작년보다 0.4%p ↓

The World Trade Organization has taken an ax to its forecast for global trade growth this year.
It says the huge downward revision was mainly due to the ongoing trade tensions between the U.S. and China.
Ko Roon-hee reports.
The outlook for the world economy remains bleak...as an intergovernmental trade organization is warning world trade will continue to face strong headwinds in 2019.
The WTO announced Tuesday...that world trade is expected to grow by 2-point-6 percent this year...which is sharply down from its earlier forecast of 3-point-7 percent made in September last year.
The actual figure for 2018 was 3-percent...far lower than its outlook of 3-point-9 percent.
As for why it changed its 2019 outlook, the WTO pointed to the ongoing trade spat between the world's two biggest economies.
"The fact that we don't have great news today should surprise no one who has been reading the papers over the last 12 months. Of course there are other elements at play, but rising trade tensions are the major factor to the stories today. Over the last year, we have seen a range of new tariffs put in place, affecting widely traded goods."
Other reasons include slower economic growth in North America, Europe and Asia.
The WTO also says...the effect of the Trump administration's expansionary fiscal policy is diminishing.
Another reason is China changing its focus to services and consumption...from manufacturing and investment.
A chief economist at the WTO added...that the situation might get worse if the U.S. decides to impose tariffs on imported cars...which could be up to 25 percent.
Although the outlook for 2020 is slightly better at three percent..., the WTO reiterated it's highly dependent on an easing of trade tensions.
Ko Roon-hee, Arirang News.