FX.co ★ Possible victory of Trump to threaten global economic health

Donald Trump’s victory in the US presidential election could become another serious problem for the global economy, IMF Managing Director Christine Lagarde believes. The consequences are expected to be far more large-scale than the fallout from Brexit.

Trump’s economic program is against international trade development. Its implementation could trigger the protectionist movement. “I hope it is not a 1914 moment and I hope that we can be informed by history to actually address the negative impact of globalization in order to leverage the benefits that it can deliver. Because it has historically delivered massive benefits and it can continue to do so,” Lagarde said adding that it always was “waves of protectionism” that “preceded many wars.” In her opinion, protectionism “hurts growth, hurts inclusion, and hurts people.” That is why the economic society should know that Trump’s economic policy – introduction of penalty tariffs on goods from China and Mexico and rupture of free trade agreements in particular – will make good neither for the global economy nor for the United States.

“We have to work with all governments and all authorities but we certainly hope that whatever new government is in place in the US and whoever is elected as president will look at trade in positive terms,” Ms. Lagarde stated.