Only very subdued growth in sight
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201911131571
The global economic cycle entered a phase of slower growth in early 2018. At the same time, the United States began to step up its protectionist measures. By September 2019, it had already imposed substantial additional tariffs on some 70% of imports from China. The US-China trade war is widely reflected in the global economy. Industrial confidence worldwide has deteriorated steeply. Services sector confidence has also waned, if, at least so far, to a notably lesser degree. The trade war and political uncertainty are dragging down and postponing investment. Growth in global trade in goods has been at a complete standstill this year. Financial markets have been volatile but have avoided significant disruptions for the time being. The Bank of Finland estimates that, so far, the trade war has contributed to slowing global economic growth by about 0.7 of a percentage point.