On the morning of July 16, local time, the International Monetary Fund released the latest "World Economic Outlook". The report pointed out that global trade is currently in a state of tension and that some developed economies' support for global economic integration is weakening, which also casts a shadow on the economic outlook.

 

Reports that in the past few months, the United States has imposed tariffs on various imports, causing trade partners to take retaliatory measures. At the same time, the North American Free Trade Agreement and the economic arrangements between the UK and the rest of the EU are under renegotiation.

 

The report pointed out that the increase in trade tensions may damage business and market sentiment, thereby weakening investment and trade. In addition to the direct impact on market sentiment, the surge in trade measures may also lead to greater uncertainty about the potential scope of trade actions, thereby hindering investment. At the same time, the expansion of trade barriers will increase the cost of tradable goods, disrupt the global supply chain, and slow the spread of new technologies, thereby reducing productivity.

 

As a policy priority, the report pointed out that multilateral cooperation is still the key to meeting cross-border challenges. The global economic integration under an open, rules-based multilateral trading system has improved people ’s living standards, promoted productivity, and encouraged innovation to spread globally. In order to maintain and expand these developments, countries should work together to further reduce trade costs and resolve differences without increasing tariff and non-tariff barriers.