Escalating trade tensions 'significant concern' for financial stability, warns ECB

Special feature by the European Central Bank warned that ongoing trade tensions have emerged as a 'critical concern' for businesses and policymakers

The note also warned that adverse geopolitical developments unrelated to trade policy itself may also aggravate trade-related tensions, altering the volume of global trade as well as the relative shares of imports and exports between trading partners. (Photo by Daniel ROLAND / AFP) (Photo by DANIEL ROLAND/AFP via Getty Images)

Escalating global trade tensions have emerged as a "significant concern" for global growth and financial stability, the European Central Bank has warned.

In a special feature published by the bank on Tuesday, it said trade openness has largely stagnated in recent years as a result of heightened scepticism towards globalisation.