The other side of economic growth and GDP

WHILE economic growth can help in creating jobs and reducing poverty, prioritising it more than anything else can lead to serious economic, social, and environmental problems.

- MAHMOUD YOUSSEF BAKER

For example, the US's economic growth is higher than it is in the EU, but in the US, it is an inflationary growth, and it could be worsened by the bill President Trump has sent to Congress featuring tax cuts and increased public spending. If approved, the combination of tax cuts and higher spending could increase the US national debt to more than 130% of GDP, double the safety margin in any economy. This would lead to downgrading the American debt and a sort of fiscal undiscipline. For the first time since World War II, foreign governments and institutional investors have started to lose confidence in America under the leadership of Trump, and the dollar as one of the safest financial havens in the world.