With the Trump`s victorious approaching to the throne of the most powerful country in the world, some have reasonably wondered whether will that mean the new economic era within the global affairs. And while some argued that the system will remain to be stagnating for the next five year term, since “one man can change nothing”, others claimed that the globe can expect an economic and financial earthquake in the next decade.
Having become the POTUS, Trump has immediately signed several executive acts concerning economic and financial affairs on the internal issues of the USA, as well as its economic relations with the rest of the world. According to the “America first”, his philosophic trajectory declared on the inaugural ceremony, he decided to revive pipelines constructions all over the USA. The idea is to revive the domestic steel industry and “to put a lot of workers, a lot of steelworkers, back to work”, as Trump claimed few weeks ago. The pipelines construction should look alike the Marshall`s plan for Europe after World War 2, with the slight difference: this one is intended to improve the steel industry in the American, and not European soil. It is only unclear who is the “Marshall” in this case, what was the “devastating nature” of the previous period (maybe Obama`s administration?), and why the US steel industry revival is of the highest importance in 2017?
However, the economic outlook of the world`s economy will be also depending on several variables when the USA is involved in analysis. Beside the internal barriers such as nullification of some acts from other areas which indirectly hit the internal financial system of the States (the Obama care legislative package, for instance), some of them have external dimension as relations with Canada and Mexico, the transatlantic partnership in economic sphere (the TTIP), the Sino-American economic relations and the Trump`s views on the foreign investments to the USA.
A lot of barriers drew attention to the world`s public, among which the highest interest was demonstrated towards his executive order to abandon arrivals from the 7 predominantly Islamic countries to the USA. The Trump`s administration views on the international economic cooperation have slightly fallen into the disappointment stage since the USA is being withdrawing from all major international economic arrangements (the TTIP with the European Union), the TPP with transpacific partners (among the most important one is China), and the agreements with Canada and Mexico. Trump has vowed to make “domestic economy great again”, and put the USA in the “right path of further progress”. The World Bank analysts say that what Trump is doing in the first months of his POTUS mandate is wrong since it`s being hitting the major exchange stocks in short terms all over the world. As the Japan Times announced it’s too early to assess what the net impact will be of Trump’s economic policies. Accordingly, it left its forecast for USA growth this year and next unchanged, at 2.2 percent and 2.1 percent, respectively. The outlook doesn’t incorporate the expected effect of Trump’s policy proposals, according to the report. The bank projects the world economy will grow 2.7 percent in 2017, down 0.1 percentage point from its forecast in June. Stalling trade, weak investment and heightened policy uncertainty have dampened global economic activity, pushing growth down to an estimated 2.3 percent last year — the slowest rate since the financial crisis. The World Bank estimates global growth will pick up to 2.9 percent next year, also down 0.1 percent from its June call.
If “it is going to be America first”, than what is going to be the second? America again? Or economically made great America again? The results are yet to be seen and analyzed but it seems that the prevailing domestic public opinions are showing the lower expectations from the acting US president and his administration.