August 5(Xinhua) Frankfurt, the European Central Bank reported on the 5th that despite recent signs of recovery in global trade, it is expected to remain weak in the coming quarters and trade growth will be weaker than global economic growth.
The report argues that while there are indicators of a short-term recovery in global trade, given the weak investment prospects of many economies, global trade growth will be very slow. At the same time, the downside risks affecting global trade prospects in recent months have been partially realized as a result of tariff increases, and the threat of further escalation of trade tensions remains.
According to the report, the weakness of the global economy in recent quarters has been reflected mainly in the industrial sector, particularly in the electronics and automotive sectors, both in relation to the significant decline in trade volumes and in the structural changes in the medium term, including the challenges posed by growing environmental problems.
Research by the European Central Bank shows that since manufacturing imports account for more than 50 per cent of global imports, but only 20 per cent of the world economy, the impact of a sharp slowdown in manufacturing output on global trade is more pronounced than the impact on the global economy.