Tag archive: Donald Trump

IMF Downgrades US Economy Forecast

The International Monetary Fund has downgraded its growth forecast for the US’ economic growth on concerns over Donald Trump presidency’s ability to make policy changes.

The IMF revised down its US gross domestic product growth predictions from 2.3 per cent to 2.1 per cent, while its global economic forecast remains unchanged at 3.5 per cent growth in 2017 and 3.6 per cent in 2018.

The organization said it downgraded US forecast based on “the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of US fiscal policy changes”.

President Trump came into office after promising increased infrastructure spending and limited taxes and regulations. However, these policies has remained stalled as the administration focuses on other matters such as healthcare regulation and disagreement within the Republican party.

The IMF also downgraded growth forecast for the UK from 2 per cent to 1.7 per cent, due to “weaker-than-expected activity” for the first three months of 2017 following Brexit.

News: Australia Tries to Save the TPP as Donald Trump Pulls the US Out of the Deal

Australia continues to push for the Trans-Pacific Partnership trade deal after President Donald Trump withdrew the US from the accord.

The pull-out was one of Trump’s first executive orders, fulfilling his campaign promise.

Prime Minister Malcolm Turnbull said while US’ withdrawal represented a “big loss”, the deal should not be abandoned.

“It is possible that US policy could change over time on this, as it has done on other trade deals,” Turnbull said. “There is also the opportunity for the TPP to proceed without the United States. I’ve had active discussions with other leaders as recently as last night.”

Turnbull also said Japanese Prime Minister Shinzo Abe, whose country was the only one to have ratified the deal to date, reiterated his commitment to the deal through a phone call on Monday.

Trade Minister Steve Ciobo said he had reached out to fellow signatories. “I’ve had conversations with Canada, with Mexico, with Japan, with New Zealand, with Singapore, Malaysia,” Ciobo told the ABC on Monday. “So there’s quite a number of countries that have an interest in looking to see if we can make a TPP 12 minus one work.”

Ciobo also said the deal had been designed to enable other countries to join.

“Certainly I know that Indonesia has expressed a possible interest and there would be scope for China if we were able to reformulate it to be a TPP 12 minus one for countries like Indonesia or China or indeed other countries to consider joining and to join in order to get the benefits that flow as a consequence.”

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Stockmarket: Trump’s Election Win Boosts Market

Donald Trump’s unexpected election to US presidency has boosted the stock market.

Following Trump’s win, economists expect an economic growth of 2.2 per cent in 2017 and 2.3 per cent in 2018, increasing from 1.5 per cent the past year.

Inflation is also predicted to rise to 2.2 per cent in 2017 and 2.4 per cent in 2018. The Federal Reserve has been struggling to increase inflation above the 2 per cent threshold since the 2008 financial crisis.

Bank of America’s stock has climbed by 17 per cent since Donald Trump won the presidential election.

These changes and estimates are underpinned by the belief that Trump’s administration will push for deregulation and provide market stimulus through infrastructure spending and cuts in tax rates.

The Bank of America has indicated that for every 100 basis points increase, the Bank will earn $5.3 billion in additional net interest income.