Trade disputes cause major risk to world economy: Bank of Mexico

Source: Xinhua| 2018-08-17 10:53:20|Editor: xuxin
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MEXICO CITY, Aug. 16 (Xinhua) -- One of the major risks to the world economy is escalating trade disputes, the board of directors of Mexico's Central Bank said on Thursday.

The five-member board said global trade has already seen the impact of protectionist policies adopted by countries such as the United States, according to the minutes of the bank's latest monetary policy meeting.

One member, who was not identified by name in the minutes, said there was already a downward trend in trade among emerging economies, mainly in Asia and Latin America.

The United States has adopted several protectionist measures and announced the possibility of imposing more tariffs on trade partners, which are responding with retaliatory measures, the board noted.

Such measures could significantly impact investment and the flow of international capital in the world economy, according to the board.

Mexico's economic growth is likely to register at the low end of the bank's forecast of between 2 percent and 3 percent, the board said.

The country's economy will continue to suffer from uncertainty surrounding the renegotiation of the North American Free Trade Agreement (NAFTA) and the country's future ties with the United States, the board added.

NAFTA talks are continuing in Washington this week between Mexico and the United States.

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