Audio By Carbonatix
A quarterly leading indicator of world merchandise trade slumped to its lowest reading in nine years on Tuesday, which should put policymakers on guard for a sharper slowdown if trade tensions continue, the World Trade Organization has said.
The WTO’s quarterly outlook indicator, a composite of seven drivers of trade, showed a reading of 96.3, the weakest since March 2010 and down from 98.6 in November. A reading below 100 signals below-trend growth in trade.
“This sustained loss of momentum highlights the urgency of reducing trade tensions, which together with continued political risks and financial volatility could foreshadow a broader economic downturn,” the WTO said in a statement.
The WTO forecast last September that global trade growth would slow to 3.7 percent in 2019 from an estimated 3.9 percent in 2018, but there could be a steeper slowdown or a rebound depending on policy steps, it said.
The quarterly indicator is based on merchandise trade volume in the previous quarter, export orders, international air freight, container port throughput, car production and sales, electronic components and agricultural raw materials.
“Indices for export orders (95.3), international air freight (96.8), automobile production and sales (92.5), electronic components (88.7) and agricultural raw materials (94.3) have shown the strongest deviations from trend, approaching or surpassing previous lows since the financial crisis,” the WTO said.
The index for container port throughput remained relatively buoyant at 100.3, but that may have been influenced by a front-loading of shipments before an anticipated hike in U.S.-China tariffs, the WTO said.
International trade tensions could spike next month if the United States and China escalate their tariff war, a step that could have negative consequences for the world trading system, according to the United Nations trade agency UNCTAD.
A new round of U.S.-China talks will take place in Washington on Tuesday, with follow-up sessions at a higher level later in the week, the White House said on Monday, following a round in Beijing last week.
Latest Stories
-
Anthony Joshua discharged from hospital after fatal road crash
3 hours -
Trump media firm to issue new cryptocurrency to shareholders
3 hours -
Ebo Noah arrested over failed Christmas apocalypse and public panic
4 hours -
‘Ghana’s democracy must never be sacrificed for short-term politics’ – Bawumia
4 hours -
Bawumia congratulates Mahama but warns he “cannot afford to fail Ghanaians”
4 hours -
CICM backs BoG’s microfinance sector reform programme; New Year Debt Recovery School comes off January-February 2026
4 hours -
GIPC Boss urges diaspora to invest remittances into productive ventures
5 hours -
Cedi ends 2025 as 4th best performing currency in Africa
5 hours -
Fifi Kwetey brands calls for Mahama third term as ‘sycophancy’
5 hours -
Bawumia calls for NPP unity ahead of 2028 elections
5 hours -
Police restore calm after swoop that resulted in one death at Aboso
5 hours -
Obaapa Fatimah Amoadu Foundation launches in Mankessim as 55 artisans graduate
5 hours -
Behold Thy Mother Foundation celebrates Christmas with aged mothers in Assin Manso
6 hours -
GHIMA reaffirms commitment to secured healthcare data
6 hours -
John Boadu pays courtesy call on former President Kufuor, seeks guidance on NPP revival
6 hours
