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Financial News: ECB: Trade Protectionism Key Risk To Global Growth

ECB: Trade Protectionism Key Risk To Global Growth Momentum

06/28/2018 - 08:36:00 (RTTNews)

(RTTNews) - The balance of risks for global activity and trade in the short term has worsened recently, with risks remaining skewed to the downside in the medium term, the European Central Bank said in its Economic Bulletin, released Thursday.

The central bank global trade growth is foreseen to remain resilient in the near term. However, the bank said the implementation of higher trade tariffs and the possibility of wider protectionist measures represent a key risk to global growth momentum. According to ECB, the global outlook continues to be supported by accommodative but somewhat tighter monetary policies.

In the euro area, real GDP growth is supported primarily by growth in private consumption and investment, the bank said. The currency bloc is forecast to grow 2.1 percent in 2018 and 1.9 percent in 2019 and 1.7 percent in 2020.

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