ALBAWABA – As Americans await the results of the election, analysts are predicting the impact on the US economy, depending on whether Donald Trump or Kamala Harris wins the presidential race.
Trump, Harris, and the US economy
Democratic Party policies will resume if Harris wins the election, while the country will experience a shift to Republican Party policies if Trump wins. The two parties have different views on key sectors, including trade, energy, and taxes.
Economist Intelligence Unit, the research and analysis division of the Economist Group, expects the US economy to continue strong whether Trump or Harris win the election. However, it predicts that Trump’s victory will drive a slight weaker economic growth, higher inflation, and a wider fiscal deficit.
The two parties have different views on key sectors, including trade, energy, and taxes. (Shutterstock)
It is important to note that the two candidates have opposing views on trade, immigration, taxes, and spending.
US taxes
Trump oversees major tax cuts for all Americans, as he promised to finance tax cuts with tariffs and imports revenues.
On the other hand, Harris plans to increase revenue by raising corporate taxes and rolling back personal income tax cuts.
Additionally, Capital Economics, the independent economic research business based in London, expects inflation rates to rise if Trump wins, which would keep the US dollar strong. This, in turn, would make it harder to cut interest rates, as the Federal Reserve will need to maintain higher rates to control inflation.
