Auto sales growth in 2018 has been led by strong gains in developing economies, but US protectionism may stall further gains, writes Scotiabank economist Juan Manuel Herrera in the July 2018 Global Auto Report.
“The growth in sales thus far in 2018 has, as expected, been led by strong gains in developing economies while a number of advanced economies have reached sales plateaux, albeit near record levels,” says Herrera. “The global economy remains solid amid a mutually reinforcing expansion brought about by rising trade flows across the world. An escalation of US protectionism, however, threatens to slow the pace of global growth.”
Highlights of auto sales to mid-year include:
• Automobile sales in the US and Canada remain just below record-high sales levels following a year-on-year decline of 1.7% in June in Canada and a strong 4.7% y/y expansion in June in the US.
• Global tariffs on US auto imports would likely result in tit-for-tat retaliatory measures by affected nations.
Read the full report here.