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The trade wars of President Donald Trump have caused so much uncertainty that the world economy is moving at its lowest rate in three years, the World Bank announced in a new report.
Global economic growth is expected to slow to 2.6 percent this year, the World Bank said in its half-yearly report on the global economic outlook. Specifically, advanced economies are expected to grow by 1.7% and emerging and developing-market economies by 4%.
The report, released Tuesday, titled "Intensification of Tensions, Controlled Investment".
According to the badysis of the World Bank, business confidence in major advanced and developing economies starting in April 2019 is also at its lowest level since April 2016.
"The slowdown in world trade growth at its lowest since the financial crisis of ten years ago and a collapse in business confidence" are particularly worrying, the report said.
The World Bank did not cite any particular reason for the global slowdown, but noted the turmoil and uncertainty that affected a number of countries at the end of last year and this year. ".
He also warned that "a further escalation of trade disputes between the world's largest economies, a resurgence of financial turmoil in emerging and developing economies or a more abrupt deceleration of economic growth among major economies. than that currently envisaged "could jeopardize the pursuit of economic growth.
The Trump administration is currently waging trade wars on several fronts: it is currently engaged in a customs fight against China, and has also announced a 5% tariff on all Mexican products in order to stop the influx of migrants last week .
Read more: While Trump is in Britain, Republicans would plot to block his Mexican tariffs
Last month, the White House postponed for six months its decision to impose high tariffs on cars entering the United States, a decision that would have forced the EU to retaliate against its own tariff list against the United States, announced Bloomberg.
The World Bank said it expected the pace of economic growth to stabilize over time, but warned that the global economy could remain vulnerable if these risks persisted or worsened.
The report comes as the US Federal Reserve has hinted that it could cut interest rates later this year. Fed Chairman Jerome Powell is committed to "doing the right thing" to adjust to US-China trade negotiations.
Read more: Dow pushes 500 points after Powell announces rate cuts, investors ignore global trade tensions
Global equities, US futures and US stocks surged after Powell's statement. Analysts have hinted that central banks are willing to help markets maintain economic growth, said Theron Mohamed of Business Insider.
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