Thursday , May 26 2022

More outbound problems: international trade loses dynamism


Outside, the wind continues to blow. At a time when Argentina needs to increase its exports to reimburse money accounts, The World Trade Organization released a report that warns of losing dynamics in international transactions and that foreign trade growth in the coming months will be lower than the trend.

The WTO announced on Monday World Trade Forecast Indicator, an index that has designed to provide information "in real timel "on the world trade path and recent trends, the final value of 98.6, one step lower than the previous value from 100.3 and that also represents a collapse below reference value 100, for the index, a anticipates that the growth of commercial activity in the coming months will be lower than the trend.

All components of the index show a reduction. In particular, the "continued in the continuous downturn in export orders", which is still lower than the records of recent months.

International Trade Index Drivers. Source: WTO.

In recent months, tensions in international trade were rising as a result of the increase in tariffs between the US and China, within the framework of a declared competition.

A special meeting of the Group of 20 held in Buenos Aires will be followed in Buenos Aires with special attention from analysts as expected between US presidents. Donald Trump and Chinese Xi Jinping contribute to reducing conflicts.

But, on the one hand, there is no guarantee that the dispute between China and the US will reduce and, on the other hand, it is said that the attitude of the American president's conflict could wake up new commercial conflicts of the first power with other countries or blocks of the world.

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