EIU says Trump’s victory would threaten global economy

Economist Intelligence Unit (EIU) report says Donald Trump's becoming next US president would be great threat to world economy

Photo by: Reuters
Photo by: Reuters

Republican U.S. presidential candidate Donald Trump speaks about the results of the Florida, Ohio, North Carolina, Illinois and Missouri primary elections during a news conference held at his Mar-A-Lago Club in Palm Beach, Florida, March 15, 2016

The possibility of presidential candidate Donald Trump winning the US presidency poses a great threat to world economy, a recent report by the Economist Intelligence Unit (EIU) showed.

The research group ranked Trump’s winning at number 12 out of its 20 top global risks where South China Sea and Brexit are even smaller threats that the billionaire winning November’s elections.

As the EIU justifies, the threat derives from most of Trump’s views about alienating China as well as his negative stand against Muslims.

The report pointed out that the candidate’s views could result in a trade war as his policies "tend to be prone to constant revision".

"He has been exceptionally hostile towards free trade, including notably NAFTA (the North American Free Trade Agreement), and has repeatedly labelled China as a 'currency manipulator'," it said.

“He has also taken an exceptionally right-wing stance on the Middle East."

Trump winning, the report said, could harm the Trans-Pacific Partnership signed in February while "his hostile attitude to free trade, and alienation of Mexico and China in particular, could escalate rapidly into a trade war."

"There are risks to this forecast, especially in the event of a terrorist attack on US soil or a sudden economic downturn," it added.

But the organization highly doubted Trump defeating Hillary Clinton while it said that the Congress would reject most of Trump’s proposals.

At the same scale of threats, was DAESH where the EIU said there is a high risk on ending US and European stock market if terror attacks rise.

At number 15 came a possible Grexit while a possible cold war that would be caused by Russian interventions in Ukraine and Syria was at number 16.

TRTWorld and agencies