Heading Toward Stagflation
A sector that may be heavily affected by rising costs is residential construction, adding further pressure to already high prices due to the limited supply available.
The opinion piece "Heading Toward Stagflation", written by Francisco Pastor Pomares and published in Información on April 9, 2025, analyzes the economic implications of former President Donald Trump's announcement to increase tariffs on U.S. imports.
Pastor Pomares explains that while these protectionist measures may benefit certain American industries in the medium term, they could also trigger inflationary pressures and negatively impact exports from other regions, including the European Union. He emphasizes the challenges the EU faces in responding effectively, given its commitment to free trade.
The author warns that a deepening trade war could lead to a scenario of stagflation—a combination of high inflation and stagnant economic growth—which would severely limit the effectiveness of traditional economic policies. Sectors like construction and export-driven businesses may be particularly affected due to rising costs and reduced competitiveness.
In conclusion, Pastor Pomares stresses the urgent need for international agreements to prevent inflationary spirals and ensure global economic stability.
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