BERLIN Germany's Economy Ministry is concerned that U.S. President-elect Donald Trump's policies could dampen growth in the world's largest economy in the medium-term after giving it an initial boost, business daily Handelsblatt reported on Thursday.
Citing an internal Economy Ministry paper it had seen, Handelsblatt said ministry experts saw Trump's stimulus plans giving the U.S. economy a boost before restrictive trade and migration policies weigh on the economy from 2019 at the latest.
Handelsblatt cited the ministry report as saying the initial stimulus would give way to a downturn by 2019 as Trump’s policies start to “negatively impact trade and create economic imbalances by hampering growth, increasing inflation and favoring a more restrictive monetary policy”.
A spokeswoman for the ministry declined to comment.
Trump, throughout his presidential campaign, pledged to redraw trade deals to win back American jobs.
He has threatened Mexico and China with punitive tariffs that some economists have warned could spark a trade war that could potentially roll back decades of liberalization.
(Writing by Paul Carrel; Editing by Catherine Evans)