Economy: Trade Uncertainty Rising In Nigeria – IMF - Liberty TV/Radio - News - Voice For All! Vision For Alll!
Publisher (F.BA)
September 10, 2019
TheInternational Monetary Fund, IMF has expressed concern over the rise in tradeuncertainty in Nigeria and many other economies amid the escalating tradetensions between the United States and China.
TheIMF said on Monday that rising trade uncertainty was cited as a driving factorfor “sluggish global growth” in the current issue of its World EconomicOutlook, which described the state of the world economy.
Whileunveiling a new index that tracks trade uncertainty across 143 countries, theWashington-based Fund described the World Trade Uncertainty Index as “the firsteffort to create a trade uncertainty index for a large set of advanced anddeveloping economies.
TheIndex shows increased uncertainty starting around the third quarter of 2018,coinciding with tariff increases by the US and China. It then declined in the4th Quarter of 2018 as both countries announced a deal to halt the escalationof tariffs in December.
It,however, significantly spiked again in 1st Q 2019, following a substantialexpansion of tariffs.
Based on the fund’s estimates, the increase in trade uncertainty observed in the 1st Quarter of 2019 could be enough to reduce global growth by up to 0.75 percentage point in 2019.