The World Bank's recent forecast highlights a troubling outlook for both the U.S. and global economy, predicting slow growth reminiscent of the 1960s. The report attributes this decline to increasing trade discord and calls for meaningful reforms in trade relations and job creation strategies. While the U.S. economy did experience a strong recovery post-COVID, the report emphasizes that low-income economies are struggling, thus calling for updated trade rules to enhance growth through fair tariffs.
Before the COVID-19 pandemic, the U.S. economy was in a solid place. Unemployment hovered near historic lows around 3.5%, the economy expanded at 2.3%, and per capita GDP was $63,360.
This report shows that the U.S. is not alone. The catch-up has been nearly complete for high-income economies, but low-income economies have moved in reverse.
Most developing economies today tend to have far higher tariffs than high-income economies. If their goal is to accelerate growth, their best course of action will be to lower tariffs with respect to all trading partners.
This favorable access to the U.S. market could not be sustained indefinitely. Outdated trade rules should be updated.
Collection
[
|
...
]