Where’s Americas economy going?
Presidential elections in the USA
Nov 07, 2016
Berlin/Washington D.C. (GTAI) - The United States will elect a new president on November 8th. It looks like a tight race between the republican candidate Donald Trump and his democratic opponent Hillary Clinton. From an economic point of view the United States remains solid: steady, moderate growth has been the norm since 2009. However, according to recent forecasts, the GDP growth will fall from 2,6 per cent last year to an expected 1,5 per cent this year. The main reason, in addition to declining corporate investment, is the decrease in consumption in the US which leads to negative effects on trade.
But what is the position of the world’s most influential economy? “The long tradition of US politicians supporting the abolition of international trade barriers is gone. Statements like that are even regarded as toxic for the election campaigners,” said Martin Wiekert, US-expert at Germany Trade & Invest, Germany’s federal economic development agency. Both presidential candidates are trying to convince their electorate with a critical stance. The reason for that, according to Wiekert, is that a large number of middle-class citizens perceive themselves to be economically disadvantaged by globalization and liberal arrangements such as the North American Free Trade Agreement (NAFTA).
"The political climate for the liberalization of foreign trade has further deteriorated. For example: candidates of both parties have said they’re against the Trans-Pacific Partnership (TPP), which had already been completely negotiated by the Obama government," explained Mr. Wiekert.
The export industry in Germany has shown a small slowdown as well. Last year’s record level of German exports to the US, worth of US$ 125 billion in total, will be hard to reach again during the current period. Decreasing demand in the automotive sector and investment goods was the major factor here.
The US economy, which has picked up recently, awaits news of positive development in the second half of the year. There are also signs of improvement in the industrial sector investment climate.