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Oceania’s interest-rate sensitive economies have underperformed under the weight of restrictive policy settings. The Reserve Bank of New Zealand has kicked off an aggressive easing cycle, while the Reserve Bank of Australia is poised to begin its easing cycle early next year, helping drive a recovery. Monetary easing by most of the rest of the world will help support exports, but China’s shaky outlook remains a concern.
The election of Donald Trump as U.S. president has intensified several challenges for Europe, including economic instability and geopolitical tensions. Given the EU’s heavy reliance on trade, the looming threat of a tariff war with the U.S. could further weaken the bloc’s economic position. Additionally, Trump’s stance on NATO and the Russia-Ukraine conflict necessitates a rethinking of Europe’s geopolitical strategy and increased defense spending.
Join Mark Zandi, Chief Economist and Moody’s team of Economists Moody's as they assess the prospects for economic policy under the next President and Congress.
Perspectives on the evolving economic landscape
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