(09 November 2016) – The Economist Intelligence Unit (EIU) has published a forecast update which provides an analysis of Donald Trump’s election as president of the United States. According to EIU, Mr Trump’s election victory will cause widespread alarm across the global economy.
A clean sweep gives the Republican party, and its president-elect, powers that will exceed that of his predecessor, Barack Obama, and will enable smoother passage of legislation. It also dramatically alters the outlook for the Supreme Court, which is currently one justice down and equally balanced between liberals and conservatives.
According to EIU, Mr Trump’s election victory will cause widespread alarm across the global economy, given his loose grasp of economic policy, unabashed political populism and tendency for contradiction.
EIU expects to see wild gyrations in bond, stock and currency markets until Mr Trump provides some clarity on his policy agenda.