World Trade Slowing in Light of Ongoing Disputes

(GENEVA, SWITZERLAND) World trade in commercial services lost momentum through the second quarter of 2019 according to the World Trade Organization’s (WTO) new Services Trade Barometer. The reading of 98.4 is below the baseline value of 100, suggesting that services trade continued to face strong headwinds leading into the second half of the year. The barometer is part of the WTO’s efforts to develop new insights into services trade. The June reading indicates a further weakening after services trade growth slowed during the first quarter of 2019. For comparison, during a recent peak in July 2018, the barometer registered above 103. Despite the overall loss of momentum since the start of this year, services trade has generally held up better than goods trade since the latter is more directly affected by recent trade tensions. Agricultural trade remains challenged as a result of ongoing trade disputes around the globe.