“These are times that recommend prudence, even if this prudence further aggravates the economy.”
In the midst of so much political agitation and uncertainty in Portugal, one that has passed – more than custom – alongside news and comments: the interchange of perspective report of the organization for Economic Cooperation and Development (OECD).
A OCDE reviewed low economic growth forecastsglobally; and the inflation should also rise in the near future.
The document never names Donald Trump, But the “reasons we already know: the trade war opened by the US President, which” will obviously increase prices. “
“You don’t realize very well What kind of economy is this of Trump, who thinks that all this will do miracles ”, analyzes Helena Garrido in.
The economy expert reinforces that these predictions will have some effects in the economy; And if they get more pessimistic, the impact may be even greater.
The economy will grow less than expected and inflation increases. “The two things at the same time are bad news”.
This instability, this uncertainty, creates a “natural prudence who goes shopping and who makes the investments ”.
And this generates the slowdown of the economy: less job, in the limit dismissals.
If inflation continues to rise, it is expected that the interest rates stop going down – or they can even go back. “And the Portuguese know the weight of it,” recalls Helena.
“These times recommend prudenceeven if this prudence further aggravates the economy. But each has to evaluate their situation, ”summarizes the expert.
Helena Garrido highlights however the case of Spain. While Germany, Italy and France have had their predictions corrected down, Spain will be the only one of the main partners in the euro zone to counteract this trend, with GDP growth twice as much as these three countries: “It is a kind of kind of kind of kind of kind of kind of kind of kind Miracle of Iberian Economies. Spain especially, despite its political instability. ”
