What is behind the decoupling of global activity and trade?

Alina Bobasu (), Lucia Quaglietti and Ana-Simona Manu

Economic Bulletin Boxes, 2019, vol. 5

Abstract: While both global activity and trade have been declining since mid-2018, world trade has slowed particularly sharply. This box investigates the reasons behind the decline in global trade and its decoupling from economic activity. This is largely explained by a turnaround in the most trade-intensive components of global demand, such as investment, exacerbated by rising global uncertainty and tighter financing conditions. From a production perspective, the decline in investment was reflected in a sharp slowdown in manufacturing output. JEL Classification: F44, F14

Keywords: Global activity; Global trade; trade elasticity (search for similar items in EconPapers)
Date: 2019-08
Note: 2663204
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Citations: View citations in EconPapers (2)

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