In the report published this week, it warns of the effects that are being triggered by the Trade tensions and political uncertaintyVirtually all regions will experience a slowdown.
The cooling will be especially significant in United StatesThe World Bank has reduced its expected growth rate by one percentage point to 2025% in 1,4. However, it has kept its outlook unchanged for China, around 4,5%, which suggests that the Asian giant has sufficient room for maneuver to mitigate the distortions that are causing the tariff measures adopted by the US administration. Furthermore, the report highlights the adverse effects of the economic slowdown in emerging countries, hindering job creation and the reduction of extreme poverty.
Among other things, there is fear that uncertainty will negatively affect the foreign investment flows in developing countries; a variable that is currently far from the peak recorded in 2008.
Source: CESCE
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