The Consequences of the War on the World Economy: With Delay in 2019

If 2018 was the year in which the war broke out, then 2019 would be the year in which the consequences would be seriously felt.

Bloomberg's Global Trader Tracker has started mitigating its upward trend in terms of declining exports and the threat of more tariffs. And the volumes of world trade are doomed to further decrease, although the US and China are looking for a way to resolve their trade dispute.

Financial markets have already suffered the severe consequences of the war. According to Bank of America Merrill Lynch, about 6% of the S & P500 decline is due solely to the negative news about the trade dispute. Chinese financial markets have shed about $ 2 trillion of their value in 2018 and are increasingly entering the sword territory.

The latest US economic data just suggests that worries about the world trade situation will pull America's economy back. Consumers feel less and less optimistic about the future of the economy, and business optimism for improving the economy has fallen to a two-year low. Companies expect lower earnings in 2019

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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