But if across-the-board tariffs are imposed it “could leave the global economy around 0.75% smaller - and global trade down some 3% - by the end of the decade”, he added. The Peterson Institute for International Economics, a US think tank, estimated it could add more than two percentage points to China’s inflation rate. The impact of “immigration policy is as important as global trade” on inflation, noted for his part Gilles Moec, chief economist at insurer Axa. The Peterson Institute for International Economics estimated this could add more than two percentage points to the US inflation rate next year, 0.2 percentage points in Europe and 0.6 percentage points in China. The trade war that Trump has threatened to wage against China risks sapping global growth.

Source: New Zealand Herald November 06, 2024 21:30 UTC