Fear of further decline in world trade: RBI

Fear of further decline in world trade: RBI 

The Indian economy is already in the grip of recession. Meanwhile, the Reserve Bank of India (RBI) has predicted a further decline in world trade.

The Indian economy is already in the grip of recession. Meanwhile, the Reserve Bank of India (RBI) has expressed the possibility of further decline in world trade. The top bank has said in its monetary policy report that future indications suggest that there will be a further decline in world trade this year.

RBI said, "The slowdown in global trade, which started in late 2018, is continuing in 2019. There are also indications for further that world trade may slow down further in 2019."

The growth rate of real gross domestic product (GDP) in America has decreased. The GDP there has come down to two percent in the second quarter of 2019.

The RBI further said that the euro area GDP growth also slowed in the second quarter of 2019 due to uncertainties between Brexit and trade tensions.

The German economy has also shrunk in the second quarter of the year due to the crisis in the auto industry amid falling exports. Even during entering the third quarter, its pace is not satisfactory. Here, the ninth consecutive month of decline in activity of factories has been recorded.

Along with this, Italy's GDP has also shrunk due to disappointing performance of industry and agricultural activities in the second quarter. The Japanese economy grew at a slower pace in the second quarter than in the previous quarter, amid an increase in trade tensions between the US-China and a decline in global demand.

Britain's real GDP has also been affected in the second quarter due to a decline in manufacturing activity due to the early closure of car plants in April following Brexit uncertainty. The economy of neighboring China has been the weakest in the second quarter of the year in almost 27 years due to reduced trade tensions with the US and global demand. Along with this, countries like Russia, Indonesia and Thailand are also facing recession.