U.N. fore­cast sees 3 per­cent growth, sharp drop in 2019

The Washington Times Daily - - WORLD -

The global econ­omy will ex­pand by more than 3 per­cent this year and next year — but that in­creas­ing risks could trig­ger “a shock to in­vest­ment and trade” and a sharp drop to 1.8 per­cent growth in 2019, ac­cord­ing to a new fore­cast.

The U.N.’s mid-year re­port re­leased Thurs­day said growth in the world econ­omy is sur­pass­ing ex­pec­ta­tions, re­flect­ing fur­ther eco­nomic ex­pan­sion in de­vel­oped coun­tries and broadly fa­vor­able in­vest­ment con­di­tions. How­ever, the re­port added, “down­side risks” have in­creased, in­clud­ing “a rise in the prob­a­bil­ity of trade con­flicts be­tween ma­jor economies.”

Dawn Holland, chief of the U.N.’s Global Eco­nomic Mon­i­tor­ing Branch, cited the Trump ad­min­is­tra­tion’s im­po­si­tion of tar­iffs in Jan­uary and proposed new tar­iffs against China as well as the rene­go­ti­a­tion of the U.S. trade agree­ment with Mex­ico and Canada, which has left “a void of un­cer­tainty.”

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