The trade war between the US is going into its third year soon and despite the warnings of several economists, we haven’t witnessed a recession in the US or the global economy. Yet. Obviously, the trade war is still ongoing and in much of 2018 and 2019 the US economy benefitted from the corporate tax cuts of early 2018 as well as robust consumer demand. The situation is much worse in countries that depend on global exports and did not have the fiscal stimulus that the US experienced. Most notable amongst them is Germany which avoided a technical recession as close as makes no difference in 2018 and is on a direct path to a proper recession at the moment, where it will likely be joined by Italy and potentially France. The UK economy has its very own set of circumstances that are obviously not helpful and that may have pushed the economy close to recession in the second quarter this year.
The cost of the trade war
The cost of the trade war
The cost of the trade war
The trade war between the US is going into its third year soon and despite the warnings of several economists, we haven’t witnessed a recession in the US or the global economy. Yet. Obviously, the trade war is still ongoing and in much of 2018 and 2019 the US economy benefitted from the corporate tax cuts of early 2018 as well as robust consumer demand. The situation is much worse in countries that depend on global exports and did not have the fiscal stimulus that the US experienced. Most notable amongst them is Germany which avoided a technical recession as close as makes no difference in 2018 and is on a direct path to a proper recession at the moment, where it will likely be joined by Italy and potentially France. The UK economy has its very own set of circumstances that are obviously not helpful and that may have pushed the economy close to recession in the second quarter this year.