US Economic Experts Extremely Pessimistic

According to a recent global survey of economic experts, the Economic Experts Survey, respondents from the US in particular fear an increase in political instability and a deterioration in international economic relations. “US economic experts have been very pessimistic for a year now. They are much more concerned than experts from other countries that their home country will become more politically unstable,” says ifo researcher Niklas Potrafke.

Improvement in political stability
 

While respondents in the other regions of the world observed an improvement in political stability in their countries (+10), the US experts see a significant deterioration (-22). “Political uncertainties are a risk for investment and can lead to a decline in economic growth,” says Potrafke. Commenting on the quarterly survey, he explains that assessments of political stability for the US have been continuously negative for a year. “The inability of politicians to find joint solutions to pressing problems could undermine the foundation of globalization," ,” says Potrafke.

Increase in protectionism

In addition, 48 percent of the experts surveyed in the US expect an increase in protectionism in US trade policy, in other words, the restriction of trade activities through tariffs, among other things. “Countries that isolate themselves from international trade grow more slowly than highly globalized countries,” says Potrafke.

1,514 economic experts from 119 countries took part in the latest quarterly Economic Experts Survey, conducted by the ifo Institute and the Institute for Swiss Economic Policy from September 17 to October 1, 2024.

Source: https://www.ifo.de/en/press-release/2024-11-19/us-economic-experts-extremely-pessimistic