Dylan Wagemans
THE boss of Spanish bank Unicaja has warned of a likely recession both in Spain and globally, citing growing economic instability and unpredictable financial conditions due to Trump’s trade war.
CEO Isidro Rubiales pointed to a ‘high probability of entering a recession’ due to what he described as a ‘changing and highly demanding environment’.
He emphasised the level of uncertainty currently facing international markets, highlighting recent developments that have shaken investor confidence and put pressure on governments and financial institutions.
His remarks come as part of a broader concern among economists and financial leaders, who have noted increased turbulence in the global economy.
This was largely fueled by geopolitical tensions and shifting trade dynamics.
A key factor behind this volatility is the ongoing trade war initiated by US President Donald Trump, which continues to impact international relations and global supply chains.
The outlook suggests a tightening of financial conditions, with central banks around the world expected to continue raising interest rates to combat inflation.
This monetary tightening also poses a risk of slowing down economic activity further.
Rubiales added that global geopolitical instability, particularly in Eastern Europe and the Middle East, is disrupting trade flows, adding further strain on global economies.
He warned that the combined problems could have a significant negative impact on both corporate investment and consumer purchasing power.
Additionally, inflation is expected to rise as many countries, particularly Germany, roll out ambitious spending packages on defense, infrastructure, and economic recovery, which, while aimed at long-term stability, may drive up prices in the short term.
