The rate of global trade expansion is losing momentum, sparking concerns among economists and policymakers. Several factors are contributing to this slowdown, most notably rising protectionism and escalating trade tensions between major economies. Policy uncertainty is also playing a significant role, making businesses hesitant to invest in cross-border activities.
The impact of this trade slowdown could be far-reaching, potentially dampening economic growth across the globe. Reduced trade volumes can negatively affect manufacturing, supply chains, and overall investment. International organizations are closely monitoring the situation and urging countries to resist protectionist measures in order to maintain a stable and open global trading system.