WTO predicts slowdown in trade growth
WTO foresees continued sluggishness in global trade growth during the second quarter of the current financial year due to the escalating tensions in the ensuing tariff spat between US & China. The organisation has pointed towards falling levels of growth in international air freight, automobile production, sales and trade in agricultural raw materials. “The outlook for trade could worsen if heightened trade tensions are not resolved or if macroeconomic policy fails to adjust to changing circumstances,” the Geneva-based body said in its quarterly report World Trade Outlook Indicator (WTOI) index.
India’s exports too had a dismal performance, with growth hitting a four-month low of only 0.64% in April. Some of the sectors that suffered sharp contractions include engineering goods, gems & jewellery and leather & leather products.