Economic and political implications of US presidential election – Danske Bank

Research Team at Danske Bank, suggests that the primary focus in the markets will be on the economic and financial implications of yesterday's US presidential election, where Donald Trump was elected to be the new US President.

Key Quotes

“Overall political outlook. Based on his policy proposals, Donald Trump stands for a significant regime shift in US policy. However, we think actual policy changes should be more modest due to likely resistance from Congress, even within the Republican Party. Still, Trump's room for manoeuvre is larger as the Republican Party will also control Congress.”

“Overall economic outlook. In the short term, we do not expect growth to be hit by the Trump uncertainties through lower confidence and hence we expect the economy to continue to grow around 2%. In the medium to long term, uncertainty is set to rise but we think the negative effects of more protectionism and tougher immigration policy will dominate the possible positive effects of less regulation, lower taxes and infrastructure spending.”