USA trade decline spells trouble for global economy
Figures released by the USA show that its imports fell 1.5 percent in April, marking an overall plunge of 38 percent in monthly imports compared with its peak in July last year.
While the speed of decline has eased, the trade results – also taking into account a 3.1 percent decline in their exports from March to April – has reinvigorated fears that the global economy will be adversely affected.
Industries based on discretionary consumption, such as cars and televisions, have been hardest hit, with exporters from Asia – Taiwan’s electronics sector and Korea’s car industry, for example – suffering from dampened US demand.
However, World Trade Organisation head Pascal Lamy has indicated that measures such as the Doha trade negotiations are still in play as countries recognise the need to maintain trade levels.
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