The Bank of England has claimed that US President-elect Donald Trump will accelerate a slowdown of the world economy.
“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.
“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 has vowed to end the Trans-Pacific Partnership trade deal, and the North American Free Trade Agreement (NAFTA), whilst taking on China economically.