The global transition to electric vehicles will have a “far-reaching” impact on investment, production, international trade and employment, the International Monetary Fund said on Tuesday as it updated its global economic growth forecasts.
According to Reuters, the analysis on electric cars is part of the latest IMF World Economic Outlook report, which was published after the annual meetings of representatives of the IMF and the World Bank. Their aim was to discuss efforts to boost global growth, tackle debt and finance the transition to green energy.
“The popularization of electric vehicles represents a fundamental transformation of the global automotive industry. It will have far-reaching consequences,” said the IMF.
Reuters points out that the shift to electric vehicles has accelerated in recent years and is seen as a key way of helping countries meet climate goals. According to the IMF, in 2022, transport accounted for 36%. greenhouse gas emissions in USA21 percent in the European Union and 8 percent In China.
Increasing the number of electric vehicles on the streets is in line with the European Union's goal to reduce emissions from passenger cars by 50%. in 2030–2035 compared to 2021 levels.
How will the automotive market change?
The IMF noted that the global automotive industry is distinguished by high wages, high profits and a high level of technology. At the same time, an acceleration towards the transition to electric vehicles would change the landscape, especially if China maintains its current advantage in production and exports over rivals in the US and Europe.
“In these scenarios, employment falls in the automotive sector (in Europe and the US – ed.) and the labor force is gradually transferred to less capital-intensive sectors,” the IMF said.
Customs duties as a solution to Chinese cars?
Reuters recalls that both the US and the EU have imposed tariffs on electric vehicles produced in China to counter what they believe is unfair subsidization by Beijing of domestic manufacturers.
Last month, the administration of the US president Joe Biden introduced a duty of 100 percent. on Chinese electric vehicles. And at the beginning of October, EU member states supported import duties on Chinese electric vehicles of up to 45%.
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The agency points out that Chinese electric vehicle manufacturers offer vehicles at lower prices, which is a key competitive advantage. Especially since electric cars currently remain more expensive than gasoline-powered alternatives, and demand for vehicles with electric engines is weakening around the world.
At the same time, the French government announced earlier this month that it would reduce its support for electric vehicle buyers by joining Germanwhich ended the grant program at the end of last year.
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