ISTANBUL, Oct 10 (AA/APP):The economic cost of trade wars is expected to exceed $700 billion next year, the deputy chairman of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) said on Thursday.
The slowdown in production and investments will also hit the services sector and employment if any measures were not taken, Tamer Kiran told the 10th Istanbul Finance Summit (IFS’19) that began on Wednesday.
While 75% of all world economies used to grow rapidly two years ago, the growth has eased off for 90% of all them recently, he said.
“We will see the lowest growth rate of the last decade in 2019 due to trade wars,” he said.
Meanwhile, global trade in goods will be 2.6% in 2019 according to the World Trade Organization forecast, while it was 3% last year and 4.6% in 2017, he said.
“Looking at the last 30 years’ results on average, we see that when the global economy grows 1 unit, global trade grows 1.4 units.
“However, this ratio has dropped to one-on-one in the recent period,” he stated.
Kiran blamed trade wars, especially the one between the U.S. and China, for posing as one of the biggest obstacles before the growth of global trade.
Industrial production and investments also decelerated due to trade wars, uncertainties stemmed from Brexit and geopolitical risks also affect the trade negatively, he asserted.