Measuring the impact of the trade war
The US/China trade dispute has been ongoing for more than a year, and has ramped up over recent months. In this Econosights we look at the impacts of the trade dispute on the global economy and the key points are as follows:
US tariffs on China have resulted in higher import prices in the US and some lift in consumer prices. Further potential US tariffs on Chinese imports will hit US consumer goods prices and could add around 0.3% to annual inflation.
The US economy remains in good shape, despite fears of a recession. But the trade dispute is playing a role in weakening business confidence and investment plans.
Investor expectations for an improvement in global GDP in the second half of 2019 could be disappointed. World trade volumes continue to fall and a further escalation in the trade dispute risks could detract from global GDP growth. READ FULL ARTICLE