Milan, Jan 17 (LaPresse) – An intensification of protectionist policies, for example in the form of a new wave of tariffs, ‘could exacerbate trade tensions, reduce investment, reduce market efficiency, distort trade flows and disrupt supply chains again’. The International Monetary Fund writes this in its January 2025 World Economic Outlook. ‘Growth could be affected in both the short and medium term, but to varying degrees across economies. An easing of fiscal policy in the United States, led by new expansionary measures such as tax cuts, could boost economic activity in the short run, with small positive spillovers to global growth,’ the IMF report specifies, for which ’however, in the longer run, this could require a broader adjustment in fiscal policy that could become disruptive to markets and the economy, potentially weakening – among other things – the role of US Treasuries as a safe asset globally.’
© Copyright LaPresse
