eCommerce Basis

” New Economic Pattern, New Multilateralism” – This is the topic addressed by IMF Managing Director christine lagarde at the joint annual meeting of IMF and World Bank ( WBG ) on October 11, 2018. She sighs with emotion: in the past 70 years, global economic and trade cooperation has promoted unprecedented economic growth and prosperity, but now the principles and systems on which it is based have been strongly resisted and face major challenges. She estimated that the current escalation of trade tensions could cut global GDP by nearly 1% in the next two years. Lagarde called for easing these disputes, and for this reason must reform and work together to repair rather than destroy the global trading system.

At the same meeting, the IMF released a new issue of the Global Economic Outlook report, reducing the global growth rate from 2018 to 2019 by 0.2 percentage points to 3.7% from the previous 3.9%. The report believes that increased trade tensions and the possible weakening of the rules-based multilateral trading system are major threats to the global economy, which will lead to financial market turmoil and eventually slow down investment and trade. The global supply chain will be destroyed by the increase of trade barriers, which will hinder the spread of new technologies and eventually lead to a decline in global productivity and welfare. The latest data provided by IMF show that global trade, manufacturing and investment have shown signs of weakening.