QNB warns of potential global disruptions due to US economic imbalances

Doha: Qatar National Bank (QNB) highlighted significant global economic imbalances, particularly concentrated in the United States economy, both in te...

Doha: Qatar National Bank (QNB) highlighted significant global economic imbalances, particularly concentrated in the United States economy, both in terms of flows (current account deficits) and stocks (cross-asset positions). It warned that a further deterioration of these imbalances could increase the likelihood of a disorderly adjustment in global markets.

The bank's weekly commentary explained that the trade policies adopted by US President Donald Trump, especially those related to tariffs, were designed to address part of these imbalances. However, due to the accumulated scale of the issue, it is unlikely that unilateral or bilateral measures alone would be sufficient to deliver a smooth adjustment.

QNB noted that overcoming such economic challenges requires a coordinated international approach, stating that optimal policy alignment cannot be achieved without effective global cooperation, as was the case in managing previous major economic crises.

According to the bank, it is no secret to analysts and investors that President Trump has a strong political will to reform the global trading and financial system.

For decades, even before entering politics, Trump had been vocal about his negative views on the large US current account deficits and the country's net debtor position against the rest of the world. He has also consistently supported the re-shoring of manufacturing to the US.