“Trump 2.0” looms large in the global economy

One industry that will continue to be at the center of global trade battles is electric cars. More than 10 million were produced in China last year, surpassing the United States, Canada and the European Union (EU). apply tariffs on them.

Beijing says they are unfair and is challenging them at the World Trade Organization.

However, it is the prospect of Donald Trump imposing tariffs on the EU.

European Central Bank President Christine Lagarde said last month: “Trade restrictions, protectionist measures do not help growth and ultimately have a highly uncertain impact on inflation.” “(But) in the short term, it’s probably pure inflation.”

Germany and France are the traditional engines of European economic development. But theirs poor performance Despite a recent pick-up in growth amid political instability over the past year, the eurozone risks losing momentum in the coming year.

That is, unless consumers spend more and businesses increase investment.

Higher prices in the UK may also be due to tax and wage increases. according to a survey.

One of the obstacles to lowering interest rates in the Eurozone is that inflation remains at 4.2%. This is more than double the 2% target, and strong wage pressures have been an obstacle to lowering it further.

According to Sander van ‘t Noordende, chief executive of Randstad, the world’s largest recruitment firm, it has been similar in the US.

“For example, in the US (wage inflation) will still be around 4% in 2024. In some Western European countries it is even higher.

“I think there are two factors here. There’s a lack of talent, but of course there’s also inflation and people demanding more money for the work they do.”

Mr van ‘t Noordende adds that many companies pass these additional costs on to their customers, putting upward pressure on general inflation.

The slowdown in the global job market reflects a lack of “dynamism” by companies, and economic growth is key to reversing that, he says.

“When the economy is doing well, businesses grow, they start hiring. People see exciting opportunities, and you just start seeing people move.”