The outcome of the election in the USA is still very uncertain. Therefore, it is also unclear what economic policy will be implemented after the election.
According to the Governor of the Central Bank, Erik Thedéen, the choices made will affect the Swedish economy and may also affect Swedish inflation.
It seems quite clear that it will lead to some form of trade barriers. Both candidates seem to be talking about it, primarily against China, but it could also involve more drastic measures, says Thedéen.
His colleague in Germany, the head of the German Central Bank, Joachim Nagel, recently warned that a Trump victory could mean "drastic increases in tariffs", something that could ultimately affect the eurozone.
We need to see what the economic policy will be after the election. What Nagel has correctly analyzed is that this type of measure, such as trade barriers, is not good for economic development, especially not for an export-dependent country like Sweden, says Thedéen and continues:
It is clear that it could affect inflation and definitely growth, so it is not a policy that is welcome, but we will see when it becomes policy.
