Fitch: Global Trade Is Slowing Sharply And May Grow Only 1.9% This Year

The recovery in global trade over the past two years is slowing sharply, Fitch Ratings said on Thursday.

The rating agency expects international trade to grow by 1.9% this year, well below the 5.5% growth rate in 2022, and global GDP to expand by 2%, down from 2.7% last year.

"With globalization stalling, trade growth seems unlikely to outpace GDP in the medium term." Fitch said.

Since the conflict between Russia and Ukraine erupted last year, there have been major turbulences in global trade. In particular, Russia's energy exports have shifted from Europe to Asia.

However, Fitch also noted that while there are some signs of a shift in trade, there is no evidence at this stage that globalization is being reversed.

More popular news

Fitch Says Falling Commodity Demand Causes Industrial Production To Cool Rapidly And Softer Commodity Prices Such As Copper Are Clear Signs Of Economic Slowdown

Key Takeaway from SMM 2023 Indonesia Nickel and Cobalt Industry Chain Conference: Global Nickel and Stainless Steel Market Outlook 2023-2027 and Indonesia’s Critical Role in Attracting Chinese Investment 

ANZ Bank Is Bearish Towards Iron Ore Prices, Citing Four Key Negative Developments In China

One Of China's Top Two Lithium Giant To Expand Capacity Aggressively As It Bets On Nev And Energy Storage Markets In The Long Run, Despite Cyclical Downturn Of Lithium Carbonate Prices

BHP Plans To Expand Iron Ore Production Aggressively

South China Battles Power Crisis, The Worst This Year

Tesla to Compete with Chinese NEV Rivals Using Redesigned Model 3 Soon, China Has Become Tesla's Second Largest Market after the US