Arab News Japan

TOKYO: Donald Trump’s return as US President is the biggest risk to global economic prospects, according to a survey conducted by financial analysts Oxford Economics (OE).

In their latest Global Risk Survey, two-thirds of businesses said they believe that the US president’s policies pose a very significant threat to the global economy over the next two years.

However, more than four-fifths of businesses expect the US economy to remain strong, continuing to outpace other G7 economies this year.

OE says the implications of President’s Trump’s policies replaced geopolitical tensions as businesses’ top downside global economic risk in the short term. More than half of the respondents in the survey believe that a global trade war is a very significant risk, while geopolitical concerns have declined markedly to the lowest level in two years.

More businesses reported that they have become more negative about global growth prospects than have become more positive. However, expectations for global growth remain stable.

Geopolitical tensions and protectionism ranked as the highest long-term risk, cited by one-third of those canvassed. Climate change is the one other long-term risk cited by more than one-quarter of businesses.

However, the survey results suggest that businesses are unconvinced about the long-term economic effects of AI.

Only 6 percent of respondents view technological developments such as AI as the top global economic risk over the next few decades.