GlobalNews

World Economic Forum Warns For Negative Effects on World Economy by the Fluctuating Relations of US-China

Sharing is caring!

Tensions in international relations and nationalist politics have the potential to further weigh on the global economy this year, organizers of next week’s gathering of business and political leaders in the Swiss ski resort of Davos warned Wednesday.

In its annual Global Risks Report, the World Economic Forum said a “darkening” economic outlook, in part fostered by geopolitical tensions between the United States and China, “looks set to further reduce the potential for international cooperation in 2019.”

In 2018, the global economy slowed more than most forecasters had been predicting and stock markets around the world posted their worst year in a decade. Some of that has been blamed on the standoff between the US and China over trade that has led to both sides imposing tariffs on hundreds of billions worth of goods.

The report, which is based on the views of around 1,000 experts and decision-makers from around the world, found that 88 per cent of respondents expect a “further erosion” of global trading rules and agreements that will further hold back growth. The world is evolving into “a period of divergence following a period of globalisation,” the WEF said.

One of the most exposed countries is Britain, which is due to leave the European Union on March 29. It is unclear whether the country will actually leave on that date and under what terms it might eventually exit the bloc after British lawmakers on Tuesday voted against the Brexit deal that Prime Minister Theresa May had negotiated with the EU.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button