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According to analysts at the National Bank of Canada the global economy remains in a rut, however, policymakers are attempting to offset headwinds related to protectionism with accommodative monetary and fiscal policies. But they warn that even then, that’s unlikely to be enough to prevent the worst world GDP growth print in years.  

Key Quotes:

“It’s the first time since the 2008-09 global recession that world trade volumes have contracted for two consecutive quarters. The U.S. imposition of tariffs and retaliatory measures from trade partners have clearly been damaging. Major exporting economies, including the Eurozone and Japan, are not surprisingly struggling the most from the trade slowdown.”

“While policymakers are attempting to offset those headwinds via accommodative monetary and fiscal policies, that won’t be enough to prevent the world economy from registering its worst performance in years. We have lowered our 2019 forecast for global GDP growth to just 3.3%.”