- US imports from China fell by around 15% year on year in the first quarter of 2019
- Imports from a group of eight other Asian economies grew by more than 16%.
The initial round of tariffs imposed by the US government on China imports has started to make significant and demonstrable impacts on global trade, according to PwC’s Global Economy Watch.
Specifically, it highlights that US imports from China fell by around 15% year on year in the first quarter of 2019. This fall has created opportunities for other regional trading partners, with imports to the US from a group of eight other Asian economies–Bangladesh, India, Indonesia, Malaysia, South Korea, Taiwan, Thailand and Vietnam–growing by more than 16%.
The current edition of Global Economy Watch also evaluates concerns about the risk of another global recession, as trade tensions impact on business sentiment and demand for exports.
Growing energy efficiency offers opportunity for future
In a special report on global energy, PwC has also found that the world economy is using energy much more efficiently in the creation of economic growth. In 1990 it required around 181kg of oil equivalent to produce $1,000 of global GDP in PPP terms. In 2015, it needed 123kg, an improvement in efficiency of more than one-third. This trend has further to run, which means that $1,000 of GDP could be generated by 78kg of oil equivalent by 2040.The report identifies the two drivers of the trend as structural economic change and technological progress.
Becoming more energy efficient is crucial in limiting climate change, while also ensuring that the global economy continues to grow and the world’s population becomes more prosperous.