Economic expansion worldwide anticipated to be the slowest since the Covid-19 pandemic due to the lingering effects of Trump's trade disputes.
Global economic growth is expected to slump to its slowest pace since the pandemic, thanks to former U.S. President Donald Trump's trade wars, as per a recent OECD warning. The Paris-based Organisation for Economic Cooperation and Development predicts a meager 2.9% growth for this year and next, which would dip world growth below 3% for the first time since 2020 – a year marred by Covid lockdowns.
In a stark reminder of Trump's tariff war's impact, Bank of England governor Andrew Bailey has expressed his strongest concerns yet, saying it had been "blown up" and was causing havoc in global trade. The disruption is clear in separate figures revealing that China's manufacturing sector went backwards last month as US tariffs began to bite.
Given this homily, the OECD's forecast points to a less certain future. "Today's policy uncertainty is weakening trade and investment, diminishing consumer and business confidence and curbing growth prospects," said OECD secretary-general Mathias Cormann.
Trump's trade aggression started with hefty tariffs on trading partners on "Liberation Day" in April. Even after a temporary 90-day pause due to falling markets, separate tariffs on steel and cars were introduced. Unfortunately, UK businesses are still feeling the heat despite a much-hyped deal between Britain and the U.S, which was announced over a month ago but yet to come into effect.
The aftermath of Trump's tariffs extends beyond economic statistics. As observed by Bailey: "The overall picture on trade now is one where the rules-based system is dead. Over a long time, we built up a pattern of world trade agreements which led to a lowering of tariffs. I'm afraid that system has now really been blown up to a considerable degree, let's be honest, by all of this. That has very serious consequences for the world economy."
In times like these, smart investing can be a lifesaver. Table below offers an overview of various DIY investing platforms to help you safeguard your investments and grow your wealth amidst global trade turmoil:
DIY INVESTING PLATFORMS
AJ Bell
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Hargreaves Lansdown
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Interactive Investor
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InvestEngine
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Trading 212
Learn More Trading 212
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- In light of the ongoing global trade turmoil, smart investing has become essential for safeguarding one's investments and growth.
- Amidst the uncertainties of policy-and-legislation, business growth, and finance caused by political events such as former U.S. President Donald Trump's trade wars, DIY investing platforms like AJ Bell, Hargreaves Lansdown, Interactive Investor, InvestEngine, and Trading 212 can be invaluable tools for investors.
- The turbulence in finance and business resulting from trade policies has led Bank of England governor Andrew Bailey to declare that the rules-based system of world trade agreements has mostly been dismantled, with serious consequences for future economic growth.
