Fitch Ratings: Trump Policies Could Spark Global Economic Crisis
In a statement issued Friday, Fitch Ratings said the Trump administration “represents a risk to international economic conditions” and to the financial stability of governments around the world.
While noting that some parts of Trump’s agenda would be “positive for economic growth,” the agency said Trump’s open hostility towards certain nations and trade agreements poses a risk for many countries that rely in part on the U.S.
Canada would be one of the most affected countries in a Trump-fueled crisis, Fitch said, along with China, Germany, Japan and Mexico.
Because national economies have become more integrated in the age of globalization, any moves the U.S. makes to limit trade with one country will have “cascading effects” touching many other countries, Fitch said.
Trump’s immigration crackdown could also damage the global economy, particularly developing countries, because of “remittances” — the practice of immigrants sending money to their home countries. The flow of immigrant money from the U.S. to Mexico is the largest of its kind in the world, Fitch noted.
/Source: Fortune/
Feb. 10, 2017