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Simona Manu
- 5 August 2019
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 5, 2019Details
- Abstract
- While both global activity and trade have been declining since mid-2018, world trade has slowed particularly sharply. This box investigates the reasons behind the decline in global trade and its decoupling from economic activity. This is largely explained by a turnaround in the most trade-intensive components of global demand, such as investment, exacerbated by rising global uncertainty and tighter financing conditions. From a production perspective, the decline in investment was reflected in a sharp slowdown in manufacturing output.
- JEL Code
- F44 : International Economics→Macroeconomic Aspects of International Trade and Finance→International Business Cycles
F14 : International Economics→Trade→Empirical Studies of Trade