Part 2/8:
The recent U.S. elections were seen as transformative, raising questions about whether a similar sentiment will be echoed after the German elections. Notably, the global economic policy uncertainty index has soared, surpassing levels seen even during turbulent periods like Donald Trump's first term. This high level of uncertainty casts shadows over potential economic growth, as it traditionally dampens both household consumption and business investment. The recent IMF study underscores that this effect could be acute given the high public and private debt in the backdrop of heightened global policy turbulence.