Demonetisation has hit consumption at a time when world trade is contracting
With global trade contracting, countries have to rely on domestic demand to boost their economies
The CPB World Trade Monitor for October 2016 shows that world trade volume fell 0.7% from a year ago.
The chart also shows that compared to October 2014, world trade volume is up a mere 0.8%.
The chart underlines the sluggishness in global trade. With global trade contracting, countries have to rely on domestic demand to boost their economies. Unfortunately for India, demonetisation of high-value banknotes has affected domestic demand substantially.
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