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SHANGHAI, CHINA, April 24, 2018 /24-7PressRelease/ -- Ashton Whiteley economists say that although the global economy is on track to grow at its most rapid pace in 8 years this year, trade protectionism could have a detrimental effect on expansion.
A group of economists surveyed cited the threat of an all-out trade war between China and the United States as the biggest risk to the global economic upswing this year.
Ashton Whiteley economists say growing trade tensions between the world's two biggest economies could slow the economic recovery nurtured by almost a decade of stimulus.
Ashton Whiteley economists say that the risk of a full-blown trade war in the near future seems small but the growing trade protectionism is seen as the greatest obstacle facing the world economy at this time. Concerns over protectionism have grown since the beginning of the year as Trump has taken steps to implement punitive tariffs targeting China.
In spite of growing concerns over trade protectionism, Ashton Whiteley analysts say it is predicted that global growth will average 3.8 percent in 2018. This would be the highest rate of growth in eight years.
The International Monetary Fund has predicted growth would reach 3.9 percent this year but also cautions that increasing trade tensions may hinder expansion.
Ashton Whiteley analysts say that current trade restrictions would have little impact on world trade but any increase in trade disputes could cause upheaval in global financial markets.
Until Trump implemented harsh import duties on metals and China responded with its own tariffs, many economists thought the threat to the global economy from Trump's protectionist stance had passed.
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