Trump Presidency A Global Threat, Economic Intelligence Unit Warns

British research organization the Economist Intelligence Unit (EIU) recently released its new report on global risk. In the report, the group assigns a Donald Trump U.S. presidency a risk level of 12 out of 25 in terms of the global economy.

The EIU specifically mentions that a Trump presidency would likely greatly increase the risks of Islamic terror attacks and trade wars between the U.S. and both China and Mexico.

“His militaristic tendencies towards the Middle East (and ban on all Muslim travel to the U.S.) would be a potent recruitment tool for jihadi groups, increasing their threat both within the region and beyond,” the report reads.

Ironically, the EIU says that a Trump presidency currently poses the same risk level to the global economy as jihadi terrorism does.

Related Link: Why Is The April 17 OPEC/Non-OPEC Producer Meeting Such A Big Deal? 

The report named a hard economic landing in China as the top risk to the global economy.

Although Trump has gained tremendous momentum as the probable Republican nominee in recent weeks, the EIU does not expect him to defeat likely Democratic nominee Hillary Clinton in the general election.

Just this morning, Tony Fratto, a former aide for George W. Bush, told CNBC that he believes Clinton would trounce Trump in a general election, noting that Trump is currently “not running close at all” in national polls versus Clinton.

As the election has started to heat up in 2016, risk trades like the SPDR Gold Trust (ETF) GLD have outperformed the SPDR S&P 500 ETF Trust SPY by a wide margin year-to-date.

Disclosure: the author holds no position in the stocks mentioned.

Posted In: Analyst ColorPoliticsAnalyst RatingsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.