Anders Borg, the former Swedish finance minister widely credited with keeping the country’s economy from being dragged down by the global financial crisis and the eurozone sovereign debt crisis, has commented that he believes the election of Donald Trump will be good for the global economy in the short term.
Borg made the comments on Swedish television yesterday evening, when asked about the outlook for both the US and global economies.
“What Trump seems to be putting forward is a Keynesian stimulus package, where one lowers taxes and invests in infrastructure. That will mean we get slightly higher growth in the US. If he causes a trade war it will be more serious, but I don’t think he will do that,” Borg commented.
The downside of such an approach is that in the medium term the US will build up a deficit, but for the next 2-3 years it means that the global economy may do better than otherwise, which is “not such a bad thing”, Borg added.