GLOBAL TRADE COLLAPSE ON PAR WITH DOTCOM & GFC FALLOUT’S

GLOBAL TRADE COLLAPSE NOW FRIGHTENINGLY ON PAR WITH DOTCOM & GFC FALLOUT'S

"An industrial slump has been triggered by a perfect storm of factors, including China’s slowdown, the car industry downturn, Brexit paralysis and Donald Trump’s attempt to upend the international trade system with tariffs on European and Chinese goods," ---  The Telegraph.

• According to The Telegraph the sudden loss in trade momentum is equivalent to the months after the dot com bubble imploded in 2001 when trade volumes sank as much as 2.2%.
• Today's current move is the biggest fall since the financial crisis of 2007–2008 when global trade plummeted, diving as much as 12.7%.

• Data from the CPB Netherlands Bureau for Economic Policy Analysis revealed that world trade volume dropped 1.8% in the three months to January compared to the preceding three months as a synchronized global downturn gained momentum.

THE INTERNATIONAL MONETARY FUND

• According to IMF Managing Director Christine Lagarde:
  • "this is a "delicate moment" for the global economy as many countries are in the midst of a severe slowdown. The global economy has "lost further momentum" in the last six months",
  • Lagarde pinned trade volume deterioration on decelerating global growth and "the impact of increased trade tensions on spending"  on producer goods.
  • The global downturn in trade is widespread geographically.
  • The synchronized slowdown is expected to stabilize beyond 2020; however, in the meantime;

It's likely the world could be headed for a trade recession, if not already in one.