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