Putin says current trade relations model in crisis

ST.PETERSBURG, Jun 7 (PRIME) -- In spite of nominal growth of the global economy, the current model of international trade relations is in crisis, President Vladimir Putin said at the St. Petersburg International Economic Forum on Friday.

“The global economy’s growth has been formally… characterized by positive figures lately. The average gross domestic product (GDP) growth amounted to 2.8% annually in 2011–2018, a bit more than 3% over the last few years. But we think that the state leaders and every one has to admit that in spite of the rise, the existing model of international economic relations, unfortunately, is in crisis,” Putin said.

Global trade has ceased to be the driver of global economic development as direct and indirect protectionism rises, he said. “In fact, global trade has ceased to the absolute engine of global economic development while a new engine, whose role ultramodern technologies could play, is still being tested, and is not running at full capacity.”

Putin cited International Monetary Fund (IMF) as saying that the ratio between global trade and the global gross domestic product (GDP) has not recovered to the 2008 level.

He said that the priority goods, such as pharmaceuticals, need to be protected from trade wars.

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