Trump's protectionist trade plans could stifle German growth: Survey

Germany's heavily export-driven economy may face significant challenges under Trump’s protectionist trade policies, according to a recent survey conducted by the ifo Institute. The survey, involving 180 economics professors across Germany, has revealed widespread concern among German economists about the potential economic repercussions of Donald Trump’s presidency.

Nearly 90 per cent of survey participants believe US trade policies under Trump will negatively affect Germany’s economic growth. While over 40 per cent of respondents anticipate growth in the US economy under Trump’s administration. Notably, 11 per cent of economists predict very negative consequences for Europe’s growth, compared to 20 per cent for Germany specifically.

The survey also highlighted concerns regarding international cooperation. Over 90 per cent of participants expect worsening conditions in areas such as climate change measures, trade policy, and collaboration within international organisations. Around 85 per cent of economists criticised Germany’s preparedness for a second Trump term, giving low marks to the traffic light coalition for its handling of potential challenges.

Niklas Potrafke, an expert at the ifo Institute, emphasised the vulnerability of Germany’s economy to such policies, stating, “The German economy is heavily export-oriented and will therefore be hit particularly hard by Trump’s planned protectionist trade policy.”

The findings were based on the 49th Economists Panel conducted from November 12 to 19, 2024.

Fibre2Fashion News Desk (HU)