IMF
New IMF Chief
After the ignominious exit of Dominique Strauss-Kahn in May 2011 over a sex scandal involving a maid at a posh hotel in Manhattan, New York, the IMF has gone through a turbulent time with Greece teetering on the edge and many Euro countries overwhelmed by high unemployment rates. Meanwhile, the developing nations led by the so-called BRIC (Brazil-Russia-India-China) were clamoring someone from their ranks to be elected to lead the august international financial body. However, after much debate and hand-wringing, international community has settled on the French Finance Minister Christine Lagarde to lead the Fund. Her selection on June 28, 2011 marked another milestone for the advancement of females in the highest policy-making echelon. This is the first time the IMF will be led by a woman.
************************** IMF'S WORLD ECONOMIC OUTLOOK ******************
The International Monetary Fund on September 20, 2011 came out with dire forecasts of the world economy:
U.S. +1.5% (2011); +1.8% (2012), down from June forecast of 2.5% (2011) and 2.7% (2012).
Euro Zone: 1.6% (2011); 1.1 (2012), down from 2% and 1.7%.
Source: IMF Chief Economist Oliver Blanchard
IMF's latest bi-yearly report released on January 23, 2013 on world's economic prospect portrayed a cautious picture as it has projected world's economic growth for 2013 to be 3.5 percent and for 2014 around 4.1 percent, up from 2012 growth of 3.2 percent. IMF's chief economist Olivier Blanchard put it in perspective by saying "optimism is in the air" although a subdued one.
On July 9, 2013, IMF came up with the latest estimates of the World Economic Output:
2013 World Economic Growth: 3.1% vs. 3.3% (April Estimate)
2014 World Economic Growth: 3.8% vs. 4.0% (April Estimate)
IMF's chief economist Olivier Blanchard reasoned that downward revision in estimates of world economy's projected growth was due to three-fold causes of (A) Europe stuck in the mud of recession or near-recession, (B) US in the path of sluggish economic growth, and (C) most importantly, significant slowdown in developing world, including China and India. The slowdown in developing world is being caused by weakening internal demands as well as less than expected level of exports to the advanced economies.
IMF Downgrades Global Growth Estimate Because of Brexit Vote
That the fallout of the Brexit vote is not going to be limited only within the 28-nation European Union came from the horse's mouth as IMF chief Christine Lagarde said at Beijing on July 22, 2016 on the eve of a G-20 meeting of treasury chiefs and central bankers that the global economy was poised to rise this year at 3.1 percent rate, a basis point lower than estimated earlier, mainly due to uncertainty over Britain's June 2016 vote to leave EU. Stepping into the muddy debate of Britain's exit from EU, Lagarde asked 10 Downing Street to hasten up the process.
IMF Issues Growth Forecasts on the Eve of G-20 Finance Chief Meeting
As the finance ministers and central bank chiefs were meeting at Washington D.C. for a two-day session (October 12-13, 2017), IMF Managing Director Christine Lagarde on October 12, 2017 warned against isolationism and uncertainty in policies, especially the uncertainty surrounding Donald Trump's tax reform package. She also issued the World Economic Outlook report that forecast:
* 3.6 percent global growth for this year and 3.7 percent for 2018
* U.S. growth of 2.2 percent this year and 2.3 percent next year
IMF's Rosy Economic Forecast May Face Headwinds from Looming Trade War
As Donald Trump upped the ante on trade, IMF on April 17, 2018 issued its latest World Economic Outlook with a caveat: much of the economic progress is at the risk of peril if trade conflict between U.S. and China turns into a full-blown trade war. IMF predicted a world wide growth of 3.9 percent this year, with the U.S. and EU expected to grow 2.9 percent and 2.4 percent, respectively.
************************** IMF'S WORLD ECONOMIC OUTLOOK ******************
ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)
OECD Estimate of World Growth
According to the latest estimate by the Organization for Economic Cooperation and Development issued on March 11, 2014, the estimated world growth for this year (2014) is 3.5 percent compared to the estimated growth of 2.7 percent last year (2013).
New IMF Chief
After the ignominious exit of Dominique Strauss-Kahn in May 2011 over a sex scandal involving a maid at a posh hotel in Manhattan, New York, the IMF has gone through a turbulent time with Greece teetering on the edge and many Euro countries overwhelmed by high unemployment rates. Meanwhile, the developing nations led by the so-called BRIC (Brazil-Russia-India-China) were clamoring someone from their ranks to be elected to lead the august international financial body. However, after much debate and hand-wringing, international community has settled on the French Finance Minister Christine Lagarde to lead the Fund. Her selection on June 28, 2011 marked another milestone for the advancement of females in the highest policy-making echelon. This is the first time the IMF will be led by a woman.
************************** IMF'S WORLD ECONOMIC OUTLOOK ******************
The International Monetary Fund on September 20, 2011 came out with dire forecasts of the world economy:
U.S. +1.5% (2011); +1.8% (2012), down from June forecast of 2.5% (2011) and 2.7% (2012).
Euro Zone: 1.6% (2011); 1.1 (2012), down from 2% and 1.7%.
Source: IMF Chief Economist Oliver Blanchard
IMF's latest bi-yearly report released on January 23, 2013 on world's economic prospect portrayed a cautious picture as it has projected world's economic growth for 2013 to be 3.5 percent and for 2014 around 4.1 percent, up from 2012 growth of 3.2 percent. IMF's chief economist Olivier Blanchard put it in perspective by saying "optimism is in the air" although a subdued one.
On July 9, 2013, IMF came up with the latest estimates of the World Economic Output:
2013 World Economic Growth: 3.1% vs. 3.3% (April Estimate)
2014 World Economic Growth: 3.8% vs. 4.0% (April Estimate)
IMF's chief economist Olivier Blanchard reasoned that downward revision in estimates of world economy's projected growth was due to three-fold causes of (A) Europe stuck in the mud of recession or near-recession, (B) US in the path of sluggish economic growth, and (C) most importantly, significant slowdown in developing world, including China and India. The slowdown in developing world is being caused by weakening internal demands as well as less than expected level of exports to the advanced economies.
IMF Downgrades Global Growth Estimate Because of Brexit Vote
That the fallout of the Brexit vote is not going to be limited only within the 28-nation European Union came from the horse's mouth as IMF chief Christine Lagarde said at Beijing on July 22, 2016 on the eve of a G-20 meeting of treasury chiefs and central bankers that the global economy was poised to rise this year at 3.1 percent rate, a basis point lower than estimated earlier, mainly due to uncertainty over Britain's June 2016 vote to leave EU. Stepping into the muddy debate of Britain's exit from EU, Lagarde asked 10 Downing Street to hasten up the process.
IMF Issues Growth Forecasts on the Eve of G-20 Finance Chief Meeting
As the finance ministers and central bank chiefs were meeting at Washington D.C. for a two-day session (October 12-13, 2017), IMF Managing Director Christine Lagarde on October 12, 2017 warned against isolationism and uncertainty in policies, especially the uncertainty surrounding Donald Trump's tax reform package. She also issued the World Economic Outlook report that forecast:
* 3.6 percent global growth for this year and 3.7 percent for 2018
* U.S. growth of 2.2 percent this year and 2.3 percent next year
IMF's Rosy Economic Forecast May Face Headwinds from Looming Trade War
As Donald Trump upped the ante on trade, IMF on April 17, 2018 issued its latest World Economic Outlook with a caveat: much of the economic progress is at the risk of peril if trade conflict between U.S. and China turns into a full-blown trade war. IMF predicted a world wide growth of 3.9 percent this year, with the U.S. and EU expected to grow 2.9 percent and 2.4 percent, respectively.
************************** IMF'S WORLD ECONOMIC OUTLOOK ******************
ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)
OECD Estimate of World Growth
According to the latest estimate by the Organization for Economic Cooperation and Development issued on March 11, 2014, the estimated world growth for this year (2014) is 3.5 percent compared to the estimated growth of 2.7 percent last year (2013).
New Head of OECD Welcomes Biden's Minimum Taxation Proposal
The new head of the Organization for Economic Cooperation and Development, Mathias Cormann, told reporters on June 1, 2021 after taking over the secretary general job of OECD from Angel Gurria, who had led the Paris-based organization since 2006, that President Joe Biden's proposal of a global minimum corporate tax was a "game changer". President Joe Biden proposed a minimum corporate tax rate of 15% that would put a floor to prevent an undue "race to the bottom" among many tax havens.
Global Agreement Signed on Minimum Corporate Tax Rate
A landmark agreement was signed in Paris on October 8, 2021 that Organization for Economic Cooperation and Development, OECD, had helped put together after a six-plus-year intense negotiation that, for the first time, would set 15% as a floor for the tax rate on corporate profits. 136 nations, including all member states of G-20 and OECD, signed the agreement on October 8, 2021 that would cover nations with 90% of the global output. Now, the rulesets have to be turned in into individual legislations and ratified by the legislatures of all participating nations. President Joe Biden hailed the agreement as equitable as it would "ensure that profitable corporations pay their fair share, and provide governments with the resources to invest in their workers and economies". U.S. Treasury Secretary Janet Yellen said that the agreement would end the so called "race to the bottom" and help America win the international competition to attract businesses based on innovation, ingenuity and productivity. Tech companies such as Google and Amazon are on board as it will give certainty and uniform tax regime instead of multitude of tax regimes by different nations. The mechanism agreed upon will cover companies with at least 10% profitability and $23 billion in global sales. The deal will be discussed and finessed in the next week's G-20 foreign ministerial meeting and will be given final shape during Rome Summit of G-20 leaders later this month (October 2021). There are two components of the agreement: first component involves the digital sales that happen in countries with no physical presence and will now be subjected, under the agreement, to the local corporate tax regimes on the profits, affecting 100 global corporations, and the second component involves the so called 15% of the minimum corporate tax rate to be implemented by individual nations for corporations with the current total annual global sales of $864 billion.
NAFTA
NAFTA Trucking Rule
On October 21, 2011, first fleet of Mexican trucks entered into interior parts of the USA, almost 11-and-1/2 years after the originally scheduled timeline. Under NAFTA, signed in 1994, Mexican trucks would have access to highways in border states by 1995 and full access to all U.S. highways by January 2000. However, until now, Mexican trucks have seldom gotten access to beyond a border buffer zone. During George W. Bush's administration, a limited number of the Mexican trucking companies were allowed to participate in a pilot program that had allowed access to U.S. interior. After Barack Obama was elected, the pilot program was cancelled in 2009. The Mexican government responded by imposing $2 billion worth of tariff on 99 U.S. imports, including Christmas trees, onions, oranges, apples, juice concentrates, toothpaste, deodorant and sunglasses. Mexico reduced the tariff after signing the trucking agreement with the USA in July 2011, and removed altogether on October 21, 2011. At present 11 Mexican trucking companies are going through the certification process.
******************************** NAFTA RENEGOTIATION ***********************
NAFTA Renegotiation Begins
U.S., Canadian and Mexican officials on August 16, 2017 launched the renegotiation process of NAFTA at Washington, D.C. U.S.T.R. Robert Lighthizer is leading the U.S. officials.
First Round Concludes with Promise of Follow-up Rounds, Quick Wrap-up
Cognizant of national elections in Mexico and the United States next year, the five-day (August 16-20, 2017), first round of NAFTA talks concluded on August 20, 2017 at Washington, D.C. with a joint communique that stressed on upgrading the agreement by establishing the "21st century standards to the benefit of our citizens". The press statement also called for an accelerated and comprehensive negotiation process. The second-round will be held in Mexico between Sep 1-5, 2017, and the following round will then move to Canada for a late September 2017 session.
Third Round of NAFTA Re-Negotiation Talks Concludes without Thorny Issues
The third-round of NAFTA re-negotiation talks concluded on September 27, 2017, and during this round, U.S.T.R. Robert Lighthizer apparently did not even introduce some of the contentious topics that Trump administration had been fretting over. The third round, held in the Canadian capital of Ottawa, dealt and made significant progress on issues such as competition policy, digital trade, state-owned enterprises and telecommunications, according to Canadian Foreign Minister Chrystia Freeland. One of the contentious topics is NAFTA's Chapter 19 that calls for an arbitration panel to mediate any dispute among parties that Washington came to despise, but Canada and Mexico favored it. Another contentious topic is related to "local content-rules", and Trump administration was in favor of tightening the rules to ban any product from outside the region to have label "made in North America" just because it is assembled in Mexico. The fourth-round will be held in Washington D.C. October 11-15, 2017.
Sixth Round of NAFTA Re-negotiation Ends without any Concrete Results
Sixth round of talks on revising current version of NAFTA ended on February 2, 2018 at Washington without yielding any tangible results. The seventh round of NAFTA re-negotiation will begin at the end of February 2018.
Trump Pushes for Sunset Clause
President Donald Trump's June 8, 2018, bilateral session with Canadian Prime Minister Justin Trudeau at the Quebec resort town of La Malbaie, venue of G-7 summit, covered NAFTA and his insistence on putting a five-year sunset clause as part of renewal of the landmark trade deal involving U.S., Canada and Mexico. Trump on June 9, 2018 told correspondents before heading out to Singapore for a landmark summit with North Korean leader Kim Jung Un that his meeting with Trudeau on NAFTA renewal went really well. However, Trump did not forget to issue a stern warning that if he found the NAFTA not to be working in favor of U.S., he would tear up the deal and instead go for separate deals with Mexico and Canada.
Canada, U.S. Reach NAFTA Renewal Deal a Month after U.S. and Mexico Agreed
A frenetic series of talks between officials from Ottawa and Washington reached an agreement late September 30, 2018, hours before October 1, 2018 deadline, to resuscitate the flagging NAFTA and put it on track. Trump administration and Mexico reached a deal in August 2018 to renew NAFTA with some significant tweaks, and threatened to put the deal in effect without Canada if no agreement was reached with Ottawa by September 30, 2018. Under the deal with Canada, U.S. dairy will have less restrictive trade barriers in getting access to lucrative markets in the north while Trump administration dropped its earlier insistence that a dispute resolution panel be scrapped. For the time being, the automobile tariffs imposed by both nations will continue. Among the biggest tweaks done to NAFTA were provisions that included:
* A revision of sunset clause proposed by Trump administration
* Auto parts to be allowed for duty free shipment across the borders should have a larger percentage to be made in the high-wage factories
President Hails the new NAFTA
President Donald Trump said at the Rose Garden on October 1, 2018 that the U.S.-Mexico-Canada Agreement, or USMCA, will close "many deficiencies and mistakes" of NAFTA. Although Trump gave the trilateral deal a new name, to many it's still NAFTA.
NAFTA Replacement Deal Signed on the Sidelines of G-20 Summit at Buenos Aires
Leaders of the USA, Canada and Mexico signed a landmark agreement on November 30, 2018 on the sidelines of G-20 summit at Buenos Aires that would replace the quarter century-old NAFTA, pilloried by Donald Trump as the worst trade agreement in the U.S. history. The agreement signed by Donald Trump, Justin Trudeau and outgoing Mexican President Enrique Pena Nieto is called the U.S.-Mexico-Canada Agreement, or USMCA. NAFTA will continue to be effective until legislatures in three countries ratify the USMCA.
******************************** NAFTA RENEGOTIATION ***********************
Trump Delays Tariffs on Auto, Lifts Metal Tariffs
In pursuit to sway Congress to approve U.S.-Mexico-Canada Agreement, or USMCA, renegotiated version of NAFTA, Trump administration tried its latest trick to appear bold while indirectly sending conciliatory message to Congress as Trump administration announced on May 17, 2019 two key trade-related declarations made hours apart:
* It will delay for up to six months the imposition of tariffs on the imports of autos and auto parts from Mexico and Canada
* It will lift tariffs on steel and aluminum imports from Canada and Mexico effective May 19, 2019
In June 2018, Trump administration leveraged an obscure trade clause, Section 232 of the Trade Expansion Act of 1962, allowing the Commerce department to take steps in the interest of national security to impose tariffs on steel and aluminum imports from Canada ($14 billion) and Mexico ($3.5 billion). Canada will also lift the punitive tariffs imposed as a retaliation on $13 billion in U.S. imports. However, the tariffs on auto and auto parts will have much more devastating impact as U.S. imported $192 billion in vehicles and $159 billion in auto parts from its neighbors.
Pelosi Announces Deal on USMCA with Trump Administration
Speaker Nancy Pelosi said on December 10, 2019 that House Democrats had reached a deal with the Trump administration on the U.S.-Mexico-Canada Agreement, USMCA, rechristened version of an update to 25-year-old NAFTA. Under the USMCA deal, Democrats won some key concessions from the administration, including strong environmental rule and strong labor rights in Mexico, especially having five U.S. representatives to carry out labor rules oversight in Mexico.
Mexico Expresses Disappointment over Last Minute Inclusion of Labor Oversight Provision
Mexican government slammed a last minute surprise pulled by the White House and Congressional negotiators over including a provision of five U.S. attaches to oversee the labor conditions in Mexican factories before sending the compromise bill to Congress on December 13, 2019. A Mexican trade official, Jesus Seade, undersecretary for the North America in the foreign ministry, flew on December 15, 2019 to Washington D.C. to hold talks on the thorny issue that had raised concern in Mexico about US meddling in a sovereign country. During negotiation, Mexican officials resisted calls of foreign inspectors in Mexican soil, and instead, settled for a three-member dispute resolution panel. Jesus Seade said that he had sent a letter to U.S.T.R. Robert Lighthizer, expressing "surprise and concern" over the new provision included before sending the measure to Congress on December 13, 2019. Negotiators from the U.S., Canada and Mexico signed the agreement, called the U.S.-Mexico-Canada Agreement, USMCA, on December 10, 2019 at Mexico City. Two days later, December 12, 2019, Mexican Senate overwhelmingly ratified the agreement. Then the world had shattered for Mexican trade officials as they came to know the surprise inclusion of five U.S. attaches in the agreement as part of a compromise between Trump administration and Congressional Democrat before sending the bill to Congress on December 13, 2019.
USMCA Approved Overwhelmingly by the House a Day after Impeachment Vote
In a legislative paradox, Democratic majority of the House voted on December 19, 2019 to give President Donald Trump a much sought after political victory a day after impeaching a sitting president only for the third time in U.S. history. House of Representatives voted 385-41 to approve the remake of NAFTA, formally called the U.S.-Mexico-Canada Agreement, or USMCA, handing the president a significant political victory in an issue that he had campaigned very hard in 2016. The House vote came days after White House had struck a compromise with the Democrats that would strengthen the workers' rights and environmental rules in Mexico, and the deal was backed by powerful AFL-CIO. The 25-year NAFTA update was overdue with new e-commerce and rules. Texas' oversized export economy was underlined by unanimous support of Texas delegation in favor of the deal. Many of the mid-western rural GOP lawmakers have something to show to their constituents: enhanced access of dairy farmers to a sprawling Canadian market.
Senate Approves USMCA on January 16, 2020 by 89-10 votes.
Trump Signs the USMCA
Surrounded by hard-hat-wearing workers and Republicans, President Donald Trump on January 29, 2020 signed the landmark U.S.-Mexico-Canada Agreement at a White House ceremony. Trump didn't invite any Democrat to the event.
Pelosi Announces Deal on USMCA with Trump Administration
Speaker Nancy Pelosi said on December 10, 2019 that House Democrats had reached a deal with the Trump administration on the U.S.-Mexico-Canada Agreement, USMCA, rechristened version of an update to 25-year-old NAFTA. Under the USMCA deal, Democrats won some key concessions from the administration, including strong environmental rule and strong labor rights in Mexico, especially having five U.S. representatives to carry out labor rules oversight in Mexico.
Mexico Expresses Disappointment over Last Minute Inclusion of Labor Oversight Provision
Mexican government slammed a last minute surprise pulled by the White House and Congressional negotiators over including a provision of five U.S. attaches to oversee the labor conditions in Mexican factories before sending the compromise bill to Congress on December 13, 2019. A Mexican trade official, Jesus Seade, undersecretary for the North America in the foreign ministry, flew on December 15, 2019 to Washington D.C. to hold talks on the thorny issue that had raised concern in Mexico about US meddling in a sovereign country. During negotiation, Mexican officials resisted calls of foreign inspectors in Mexican soil, and instead, settled for a three-member dispute resolution panel. Jesus Seade said that he had sent a letter to U.S.T.R. Robert Lighthizer, expressing "surprise and concern" over the new provision included before sending the measure to Congress on December 13, 2019. Negotiators from the U.S., Canada and Mexico signed the agreement, called the U.S.-Mexico-Canada Agreement, USMCA, on December 10, 2019 at Mexico City. Two days later, December 12, 2019, Mexican Senate overwhelmingly ratified the agreement. Then the world had shattered for Mexican trade officials as they came to know the surprise inclusion of five U.S. attaches in the agreement as part of a compromise between Trump administration and Congressional Democrat before sending the bill to Congress on December 13, 2019.
USMCA Approved Overwhelmingly by the House a Day after Impeachment Vote
In a legislative paradox, Democratic majority of the House voted on December 19, 2019 to give President Donald Trump a much sought after political victory a day after impeaching a sitting president only for the third time in U.S. history. House of Representatives voted 385-41 to approve the remake of NAFTA, formally called the U.S.-Mexico-Canada Agreement, or USMCA, handing the president a significant political victory in an issue that he had campaigned very hard in 2016. The House vote came days after White House had struck a compromise with the Democrats that would strengthen the workers' rights and environmental rules in Mexico, and the deal was backed by powerful AFL-CIO. The 25-year NAFTA update was overdue with new e-commerce and rules. Texas' oversized export economy was underlined by unanimous support of Texas delegation in favor of the deal. Many of the mid-western rural GOP lawmakers have something to show to their constituents: enhanced access of dairy farmers to a sprawling Canadian market.
Senate Approves USMCA on January 16, 2020 by 89-10 votes.
Trump Signs the USMCA
Surrounded by hard-hat-wearing workers and Republicans, President Donald Trump on January 29, 2020 signed the landmark U.S.-Mexico-Canada Agreement at a White House ceremony. Trump didn't invite any Democrat to the event.
First Tripartite Summit in Five Years
President Joe Biden on November 18, 2021 hosted his northern and southern neighbors in the East Room of the White House. Prior to the three-way conversation among the three leaders, Justin Trudeau and Andres Manuel Lopez Obrador had met separately with Joe Biden. The meeting is the first in-person summit among the three USMCA member nations in five years. Despite charming and affable gestures among the leaders, there were contentious issues afflicting the individual bilateral and collective trilateral relations. Canada has expressed strong reservation against Biden's Build Back Better provision of subsidies for EVs, Mexico has expressed its disappointment over Washington's dithering of more worker visas, and U.S. and Canada have expressed dismay over Mexico's lack of full-fledged commitment to fighting against the climate change.
U.S-Canada-Mexico Summit Yields a Virtual Migration Platform
U.S. President Joe Biden, Canadian Premier Justin Trudeau and Mexican President Andres Manuel Lopez Obrador attended the North American Leaders' Summit in Mexico City on January 9, 2023 and January 10, 2023. The two-day summit was helpful and constructive as the leaders discussed on migration, commerce, trade, terrorism and Haiti. The key focus was on migration. The North American Leaders' Summit announced a virtual platform "to give migrants streamlined access to legal pathways".
UNITED NATIONS
UN Forecasts Faster Growth
United Nations on December 10, 2014 released the World Economic Situation and Prospects 2015 report that portrayed an world economy that would accelerate, but clumsy at best. The East Asian economy will grow, according to the UN, fueled by strong household consumption. The worldwide growth will register 3.1 percent in 2015 and 3.3 percent in 2016.
WORLD TRADE ORGANIZATION
WTO Rules in Favor of USA in a High Stake Auto Import Case
World Trade Organization on May 23, 2014 ruled that China had violated rules by slapping duties as high as 21 percent on imports of cars and SUVs from USA. Beijing imposed the punitive duties in 2011 after lobbied by Chinese automakers in 2009. U.S. Trade Representative Michael Froman hailed the May 23, 2014, WTO ruling.
The ruling was the second setback to Beijing after a similar March 2014 WTO ruling that chastised Beijing for imposing high export duties on rare earth elements, the light-weight, superconductive minerals that are critical to a wide-range of high-tech products.
First Ever Multilateral Trade Agreement by WTO
After years of failed negotiation, World Trade Organization agreed on a multilateral deal, Trade Facilitation Agreement, on November 27, 2014 that would boost global trade and commerce by more than a trillion dollar every year from the current level of $22 trillion to $23 trillion. The agreement marked the first ever multilateral trade treaty in the organization's 20 years of existence and was possible after a U.S.-India deal on food security and subsidies. The treaty, Trade Facilitation Agreement, was hailed by U.S. Trade Representative Michael Froman as a "critical step forward".
Global Trade Likely to Take Hit by Growing Populism
Growing populism around the world manifested recently by Brexit vote, rising isolationist views by Pan-European political parties and Donald Trump's strident campaign in the U.S. Presidential election against globalization is having a toll on global trade, according to World Trade Organization. WTO reported on September 27, 2016 that the global trade would grow 1.7 percent compared to its previous estimate of 2.8 percent issued in April 2016.
WTO Chief to Resign before Term Expires
Citing personal reasons, the head of World Trade Organization announced on May 14, 2020 that he would resign on August 31, 2020 on the ground of personal reasons. Roberto Azevedo, a former Brazilian diplomat, worked at cross-hairs of U.S. President Donald Trump's uninterrupted criticism of the U.N. body over global trade policies, and decided to call it quits a full year before expiry of his seven-year term.
WTO Emphasizes on Food Shortage, Overfishing, Coronavirus
The first ministerial-level meeting of 164-nation World Trade Organization in four-and-half years was held at Geneva on June 12, 2022 in which more than 120 nations' ministers had participated. WTO Director-General Ngozi Okonjo-Iweala said afterward that the "road will be bumpy and rocky" as the world faced a hunger crisis, soaring inflation, still a treacherous COVID-19 and overfishing in the world's seas and oceans which posed a serious threat to marine biodiversity. A deal on overfishing is at its closest point ever.
WORLD BANK
World Bank's Dim Forecast on Global Economy
World Bank on June 7, 2016 revised downward the global economic growth for 2016 from 2.9 percent estimated in January to a meager 2.4 percent.
WORLD BANK
World Bank's Dim Forecast on Global Economy
World Bank on June 7, 2016 revised downward the global economic growth for 2016 from 2.9 percent estimated in January to a meager 2.4 percent.
World Bank Issues Bleak Global Economic Outlook
World Bank's first report of 2021 on the Global Economic Outlook was issued on January 5, 2021 that portrayed the sharpest economic decline (4.3%) last year (2020) since 1945 when the global economy had shrunk by 9.8% at the tail end of World War II because of the military demobilization by nations. In comparison, economy shrank on the average 4.8% during the Great Depression between 1930 and 1932, and 1.8% in 2009 in the aftermath of the Great Recession. The Global Economic Outlook forecasts a global growth of 4% this year (2021), fueled by the two largest economies of the world--USA (3.5%) and China (7.9%). World Bank President David Malpass opined on the health of global economy by spotlighting the weak links such as "public health, debt management, budget policies, central banking and structural reforms". The report struck a cautious tone because of surging Coronavirus and slow vaccination drive. World Bank in recent days made available $12 billion for vaccination of 1 billion people in poor countries as well as $160 billion in aid to more than 100 countries.
World Bank: U.S. Leads Global Economy to Grow
The World Bank in the latest Global Economic Outlook report said on Jun 11, 2024 that the global economy would grow 2.6% in 2024 compared to January 2024 estimate of 2.4%. The U.S. economy will grow at an annualized 2.5%, nearly a full percentage point higher than in January 2024 estimate.
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