Opportunities for all

If Donald Trump’s plans are carried out and do result in economic growth in the US, many other countries could benefit.

- Mariam Isa

Much has been made of the potential havoc US president-elect Donald Trump will wreak on the health of the global economy if he follows through on belligerent threats to slap massive tariffs on cheap imports and abandon global trade agreements that took years to negotiate.

His sharp criticism of China, Iran and Mexico, together with threats to eject hundreds of thousands of illegal US immigrants, support torture of terror suspects, and establish a registry for Muslim Americans have done little to soothe the nerves of world leaders concerned about geopolitical stability.

But US financial markets – and global commodity prices – have given Trump’s election an unequivocal thumbs-up, as players bet that his pledges to slash corporate and individual taxes and spend billions of dollars on infrastructure will spur economic growth in the country.

If this materialises, other countries should also benefit, through knock-on effects and through some of Trump’s controversial policies becoming the catalyst for ending a period of austerity imposed on many developed countries since the global financial crisis.

Some analysts believe the populist policies espoused by the bombastic business mogul-turned-president will prod sitting European leaders into loosening government purse strings to appease disgruntled voters, who may otherwise desert them in droves in elections in 2017.