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EOSC

Who Loses Most from Slow Growth in Global Trade

Growth rates of global economic activity and global trade have slowed significantly in recent years. Because developing economies generally derive a larger proportion of their value added from final spending in foreign economies, they are more adversely affected by slower growth in the global economy than most advanced economies.

Among the seven regions of the global economy that we consider, the economies of North America (excluding Mexico) have the least exposure to final spending in the rest of the world. In contrast, many economies in the Middle East and Africa (MENA) region, which have a high degree of dependence on the production and export of energy commodities, have the most exposure to final spending in foreign economies. Consequently, these economies have the most to lose from continued sluggish growth in global economic activity and trade.

 

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  • Dec 14, 2015
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