BIMCO has released its Macroeconomics assessment for 2018 based on current trends and events.
NEW YORK: The world’s largest international shipping association has advised that nations should foster a strengthened global economy by undertaking structural reforms to help unleash growth potential.
BIMCO referred to the International Monetary Fund’s (IMF) World Economic Outlook for January 2018, which showed it has revised its forecast for global growth in 2018 and 2019 — up by 0.2% to 3.9% for both years.
While political events can undermine the development, BIMCO has predicted that 2018 may bring fewer economic growth “derailing” events compared to 2017. It found that disturbances may come from the US midterm elections in November, negotiations for both NAFTA and Brexit, and the stability of China’s economy.
BIMCO warned that the political deals resulting from these events need to decrease the number of trade barriers and ensure regulatory alignment to sustain economic growth.
This will help to encourage potential growth as restrictive trade measures can discourage trade flows and have negative knock-on effects on economic growth and job creation.
The WTO has asked all nations to resist adopting inward-looking policies and urged its members to show leadership by committing to open and mutually beneficial trade. According to the most recent trade monitoring report this has been embraced.
In the period from mid-October 2016 to mid-October 2017, 128 measures were implemented to facilitate trade, compared to 108 trade restrictive ones.
According to the WTO, world merchandise trade has rebounded strongly as volumes grew by 3.6% in 2017 compared to 1.3% in 2016.
