Monetary tightening

Global trade is now slowing sharply after a rapid post-pandemic recovery in 2021 and 2022, Fitch Ratings has revealed in a new report. Monetary tightening, fading fiscal support and service sector reopening are now weighing on global goods demand, which leaped extraordinarily during the pandemic. According to the rating agency, world industrial production is also decelerating rapidly, adding “services trade is rising, but services production is less globally specialised”. Fitch forecasts global trade growth of 1.9% in 2023, a sharp reduction from 5.5% in 2022. That would align it with global Gross Domestic Product, which it project to grow by…