The
International Monetary Fund has estimated that the continuation of the trade
war between the United States of America and China would wipe about $700
billion off the global economy by 2020. Already, information indicated that the
technology industry has lost $10bn (€8.97bn) and could end up setting back
the average US household $460 (€412.56) a year, according to an analysis by
London-based economists Kirill Borusyak and Xavier Jaravel.
In
China, the row has ensured economic slowdown. Despite the sluggishness in the
economy, a new
report by the Bank of China predicts that the economy will grow at 6.1
percent in 2020. “The overall verdict is
cautiously optimistic,” the BOC Research Institute said in the Report on
Economic and Financial Outlook for 2020.
Infoprations has earlier examined the
future of African economies amidst the predicted 2020 global recession
expected to come into fruition due to the trade war between the two countries. In the analysis, Infoprations notes that
Africa needs to pursue open and predictable policies, and revive multilateral
cooperation. Beyond these, Africa must embrace new technologies within the
global value chain to create new products and increase productivity.
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