US President-elect Donald Trump will accelerate a slowdown that has gripped the world economy, Bank of England warns as the New York billionaire prepares to enter the White House.
“There is this possibility that the slowdown in the growth in world trade, which we have seen over the past few years, accelerates because of discrete policy initiatives potentially from the world’s largest economy,” Bank of England Governor Mark Carney said at a news conference in London on Wednesday.
Unlikely political events, including Donald Trump’s victory on November 8 and Brexit in June as well as an apparent advance of other populist forces across Europe and even elsewhere, have led to a political uncertainty that threatens the global economy.
“This is more of a slow-burn issue, sand in the gears, headwind for the global economy as opposed to a sharper shock, if any of it were to actually materialize,” Carney said. “While that might not directly affect the United Kingdom, if it slows the pace of global growth – and we’re an open trading nation, one of the most open nations in the world – it’s going to have a knock-on effect through this economy.”
Trump, who gained electoral victory in the 2016 presidential election, has vowed to take on China in trade and end many of US deals, including the Trans-Pacific Partnership trade deal, and the North American Free Trade Agreement (NAFTA).