Trade War Increases Risk of U.S. Recession, Experts Say
Washington, Oct 7 (Latin Press) The risk of a recession in the U.S. economy is on the rise due to the trade war being waged by President Donald Trump, a survey aimed at experts in the sector revealed today.
Four out of five analysts interviewed by the National Association of Business Economics (NABE) estimated that the national situation could get worse.
Increased protectionism, widespread trade policy uncertainty and slower global growth are seen as key risks to U.S. economic activity, said Gregory Daco, president of NABE’s pollster.
For most economists questioned, Trump’s strategy will not succeed in its goal of reducing the country’s trade deficit.
They noted that the trade gap widened significantly from $920 billion in 2018 to $981 billion in 2019.
Experts predicted that the national Gross Domestic Product will grow by 2.3 percent in 2019, but will slow down to 1.8 percent next year, a lower figure than the last assessment in June.
They also estimated that industrial production will fall from four percent this year to just 0.9 percent next year.
Growing pessimism about corporate earnings and a broader-than-expected economic slowdown shook stock markets.
Last week Wall Street’s major indices fell sharply a day after employment and manufacturing data suggested that the U.S.-China trade war is increasingly affecting the U.S. economy.
On top of this, there is a likely trade conflict with the European Union following Washington’s announcement that it will impose $7.5 billion in tariffs on products from that region.
(Taken from PL in Spanish)
Written by Radio Grito de Baire
