Challenge

As current economic growth slowing down, we need to understand why this is happening and what are the causes.

  • The trade conflict among the major economic powers is the single dominant threat to the global economy. As the trade war escalated, many economic indicators are slipping drastically. Trade growth rate are significantly lower. When you look at the history, the trade growth is 2 to 3 times GDP growth after World War II. That was one of the leading factors of the economic prosperity after the war.

  • Another cause of the weak growth is the lack of sparking tech innovations. AI of course is right in front of door but opening that door might take many many decades. A boost of productivity will have to come to support a long lasting growth.

Reference

WTO Trade growth



Written on September 3, 2019