Global trade growth is likely to slow in the closing months of 2022 and into 2023, according to the latest World Trade Organization Goods Trade Barometer, as world economies grapple with strong headwinds.
As per ANI report, the current Goods Trade Barometer Index reading is 96.2.
The WTO said on Monday that the decline in the index could be attributed to the Ukraine-Russia war, higher energy prices and monetary tightening in major economies.
The index was weighed down by negative readings in sub-indices representing Export Orders (91.7), Air Freight (93.3), and Electronic Components (91.0). Together, these suggest cooling business sentiment and weak global import demand, ANI reported.
The Container Shipping (99.3) and Raw Materials (97.6) indices ended slightly below trend but have lost momentum.
It further said the main exception was the automotive product index (103.8), which rose above trend on strong vehicle sales in the United States and increased exports from Japan as supply conditions improved and the yen continued to depreciate.
The Goods Trade Barometer is an overall leading indicator for world trade, providing real-time information on the trajectory of merchandise trade relative to recent trends. A value greater than 100 indicates an up-trend extension while a value less than 100 indicates a down-trend extension. It is released on a quarterly basis based on data availability.
However, Moody's Analytics in its latest report 'APAC Outlook: A Coming Downshift' said that India is headed for a slower growth next year in line with its long-term potential. It said that inward investment and productivity gains in technology and agriculture can drive growth in the country.
It also claimed that the Reserve Bank of India (RBI) would raise the repo rate above 6%, which would cause GDP to falter.
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