Economist Warns of Rising Instability Impacting Global Economy
Rapid shifts in US fiscal and trade policies under the current administration are destabilizing financial markets and business operations worldwide, according to Christopher Hodge, chief US economist at Natixis. In an interview with BNN Bloomberg on Tuesday, Hodge described a climate of unpredictability driven by frequent policy reversals, complicating corporate planning and weakening consumer confidence in key markets.
Business Planning 'Impossible' Amid Uncertainty
Hodge emphasized that companies face unprecedented challenges in forecasting costs and demand due to abrupt regulatory changes. 'The White House’s approach mirrors the volatility seen during Trump’s first term,' he stated, noting parallels between the two administrations' tendencies toward sudden tariff adjustments and trade negotiations. This turbulence has particularly affected sectors reliant on trans-Pacific supply chains, prompting firms to reconsider manufacturing and distribution strategies.
Ripple Effects Across Asia
Asian economies, closely tied to US consumer demand and export markets, are grappling with the collateral damage. The disruptions have reignited debates about diversifying trade partnerships and accelerating regional economic integration. Hodge’s analysis underscores broader concerns among investors about prolonged instability slowing post-pandemic recovery efforts.
