Donald Trump plans to implement his program from the first minutes of his mandate with priority on illegal immigration, “transgender madness” as he calls it, and cryptocurrencies. And in terms of the economy, three major challenges await the new American leader.
“A new economic golden age”. This is the promise made before the Senate by Scott Bessent, Donald Trump’s candidate for Secretary of the Treasury. Arriving at the White House, the president-elect takes command of a healthy economic superpower. However, Donald Trump will face three economic challenges.
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An exploding public deficit
The first challenge will be the public deficit which is exploding, up 39% over one year, and this is unlikely to improve. “The United States spends a lot in terms of social spending. However, Donald Trump has promised not to touch this spending and moreover, he is going to lower taxes, so it is feared that the American public deficit will remain well above 6% of GDP”, estimates Maxime Darmet, economist at Allianz Trade.
-A housing shortage
Second challenge for Donald Trump, housing. One in three Americans aged 18 to 34 still lives with at least one of their parents. The reason is a supply problem since there is a shortage of four million housing units in the United States and the price has increased by more than 50% over the past four years. The average interest rate for a loan is 6.8% over 30 years.
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This joins the third challenge, inflation which oscillates between 2.5 and 3%. Donald Trump will have to be careful not to revive it, particularly with the increase in customs duties that he promises.
