Trade tensions imperil the global momentum
In the past year, the global economy has enjoyed a strong rebound in global trade. This has contributed to lifting the global economy out of the stagnant growth path that followed the financial crisis. US tariffs and the risk of retaliation, in addition to, in the worst-case scenario, a trade war, are now threatening to derail this positive momentum. These risks also pose a dilemma for central banks aiming to normalise monetary policy. Tariffs and protectionism may push up inflation in the near term, while worsening growth prospects.
For more information, please contact: Anna Breman, Group Chief Economist, phone:+46703149587