Robust Economy Despite Increasing Risks in International Trade

The domestic economy continued to expand strongly in late summer, but the decline in unemployment weakened. In the euro area, the economic upswing remained stable, albeit modest. In the USA, the economy is benefitting from the expansive fiscal policy and is expanding particularly strongly. The unsettling trade policy signals are adversely affecting world trade, as is the sharp fall in exchange rates in many emerging markets. This could subsequently affect the export-oriented industrialised countries.