By Christine Lagarde - As G20 leaders gather in Argentina, the global economy faces a critical juncture. We have had a good stretch of solid growth by historical standards, but now we are facing a period where significant risks are materializing and darker clouds are looming.
According to the World Tourism Organization (UNWTO)’s latest barometer, international tourist arrivals grew 6% in the first six months of 2018 after a record year of growth in 2017. All world regions enjoyed robust growth in tourist arrivals in January-June 2018. The increase was fueled by strong demand from major source markets, supported by an upswing in the global economy. It comes after record year-round growth of 7% in 2017.
Global Times Editorial
The Trump administration announced tariffs on Chinese high-tech and industrial imports worth of US$50 billion. The first round, on imports totaling US$34 billion, will begin July 6, while the second round is still under review.
The global economy is experiencing stronger growth, driven by a rebound in trade, higher investment and buoyant job creation, and supported by very accommodative monetary policy and fiscal easing, according to the OECD’s latest Economic Outlook.
Growth in the world economy is surpassing expectations and global GDP is now expected to expand by more than three per cent this year and in 2019, reflecting strong growth in developed countries and broadly favourable investment conditions, a new UN report finds.
After last week's global rout, Asian markets struggled to hold early gains with analysts warning of further volatility across trading markets.
President Trump declared America “open for business” in a speech on Friday to global to political and business elites in Davos, Switzerland, while taking a hard line on trade and vowing to make commerce with other countries “fair and reciprocal.”
Prospects for the global economy are looking brighter, according to the International Monetary Fund (IMF), arguing that the recent pick-up has been pretty broad-based, particularly in Europe and Asia. Tax reforms in the United States are expected to stimulate economic activity, especially business investment.
The World Bank forecasts global economic growth to edge up to 3.1% in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices.
China's president Xi told the World Economic Forum in Davos on Monday that the “migrant crisis had been caused by war, conflict and regional turbulence,” not globalization. Similarly, the 2007/8 financial crisis was caused by “the excessive pursuit of profits and a lack of economic regulations,” he said.