Our Arab Markets: Are the effects of the trade conflict between Washington and Beijing extending to them?

Two economic analysts discuss the impact of the trade war on markets in Saudi Arabia, the UAE and Egypt

The rise of trade protection and the slowdown of the global economy

The International Monetary Fund has cut more than one review of its outlook for global economic growth amid growing trade protection between the United States and its trading partners, which means imposing new tariffs on US imports from several countries, notably China, which have led to a US-China trade war since last year.

The last IMF cut for global economic growth was released last April. The International Organization estimated this year’s growth at 3.3%, the lowest rate since the global financial crisis 2007-2008.

The forecast also came in less than the previous forecast of the IMF published in January of last year as the corporation expected growth of 3.5% this year and 3.6% for next year. The institution has previously estimated the global economic growth rate in 2018 by 3.6%.

Ahmed Shams, head of research at Cairo-based EFG-Hermes, said the slowdown in global trade could negatively affect Egypt’s revenues from the Suez Canal.

Our Arab Markets: Are the effects of the trade conflict between Washington and Beijing extending to them?