The protracted US-Chinese trade stand-off is having a knock-on effect on economies across the globe.
Earlier this week, the International Monetary Fund (IMF) warned that Europe needed to come up with an emergency plan ahead of an upcoming economic slump.
The recent problems facing Germany and the Eurozone stem from declining consumer confidence globally. And the longer Washington and Beijing remain at loggerheads, the worse consumer confidence will become.
Foot off the gas…
Take for example the automotive sector. The fourth largest in the world in trade terms, analysts predict it would account for approximately 10 per cent of global trade in goods, or USD2.3 trillion.
Germany, which exported $154.7 billion’s worth of cars globally in 2018, lost 3.5 per cent compared to 2017. If consumers continue to hold off purchasing their next vehicle, what would that mean for Germany this year and beyond? Europe’s largest economy is already flirting with a recession, which it could fall into in the final quarter of 2019 – a trend that could continue in 2020.
Room for manoeuvre
Such loss in confidence can also affect investors and financial decision makers in all industries and sectors, holding off orders and causing disruption in supply chains. Being dynamic and giving yourself room to manoeuvre in trying times could be enough to keep your head above water, while others may be losing theirs.
Traditional banking and treasury methods can also be clunky and expensive, especially if you have to consider looking elsewhere. Centtrip can open these new frontiers in a number of ways. Speak to your account manager to see how we can help.
Confidence is all you need