The Chinese trade minister GAO Hucheng has urged leading global economies to take the lead in tackling the problems pertaining to the sluggish economic growth and low trade. Hucheng made these remarks on the first day of the 2-day G20 meet of trade ministers in Shanghai. He also indicated that global growth and recovery looked grim and complicated. He further clarified that trade conditions are worsening and the global economic conditions remained unstable. Given the current scenario, G20 needs to be the first to take the responsibility of resolving the major economic problems and further drive growth and recovery.
The IMF had cut its worldwide growth predictions for 2016 (in the month of April) for the 4th time in the year. The Fund dropped its forecast to 3.2% from 3.4%, in view of the dropping global demands as well as geopolitical crisis. However, after the recent economic developments, the International Monetary Fund is slated to announce a cut for the fifth time in a row.
On the other hand, even the WTO (World Trade Organization) has indicated that the forecast for global trading is likely to be below 3% for the fifth time in 2016. Even Roberto Azevedo, Director General of WTO stated that trade shall remain low in the 3rd quarter of 2016.