Fed says trade uncertainty to trim US$ 850 bil. from global GDP
- 5 years ago
The U.S. Federal Reserve says the U.S.-China trade war and other trade uncertainties are likely to cut global GDP by one percent, or around 850 billion U.S. dollars, through early next year.
The research by the Fed is among the first attempts by central bank researchers to quantify the effects of the escalating trade tensions under the Trump Administration by analyzing newspaper articles and corporate earnings calls.
The paper said growing trade uncertainties have pulled back corporate investment and production around the world and is likely to also drag down U.S. GDP by one percent, or about 200 billion dollars.
The research by the Fed is among the first attempts by central bank researchers to quantify the effects of the escalating trade tensions under the Trump Administration by analyzing newspaper articles and corporate earnings calls.
The paper said growing trade uncertainties have pulled back corporate investment and production around the world and is likely to also drag down U.S. GDP by one percent, or about 200 billion dollars.