Analysts say global economy faces deeper uncertainty amid trade reordering

The global economy faces deeper uncertainty as a reordering of trade rules combines with rapid technological, demographic and climate change, a New York Times analysis by Patricia Cohen said. Transformational forces rattling the world economy include a revolution in artificial intelligence, rapidly aging populations, climate change and “a worldwide turn against liberal democracy and a rules-based international order,” the article said.

Daron Acemoglu of M.I.T. warned, “We are living through a singularly turbulent time.” The piece also cites trade wars, shortages of critical minerals and tense standoffs between the United States and China. In the United States, the article described chaotic policymaking: tariffs have been enacted and retracted without warning, with the president lifting some levies on groceries while threatening new tariffs on rice from India and China; the future of many tariff policies is unclear pending a Supreme Court ruling.

The report said Mr. Trump has vowed to use a $250 billion pot of tariff revenue to pay out trillions, public debt has risen to about 125 percent of output, and a stock market surge driven by AI firms is stoking both fortunes and fears. In Europe the piece noted slower growth, slipping global share, falling AI investment and what Mr.

Acemoglu called a “huge innovation problem,” alongside delayed trade votes and pressure from cheap Chinese exports and high energy prices.

Key Topics

Business, Global Economy, China, European Union, Tariffs, Artificial Intelligence