Migration policy and rates will cause greater inflation and avoid economic growth in the United States, contrary to what Trump is looking for.
“This migration policy is a risk to the United States; The workforce will go down automatically. The impact is negative and permanent, ”said Chetoouane at a press conference.
If the United States deportes 1.3 million migrants, there would be a negative impact of 1% on gross domestic product. If they are deported to their countries of origin 8.3 million people, the impact to GDP can be up to 8%, said Mauricio Giordano, Country Manager of Natixis in Mexico.
The deportation of workers will also impact on price increase.
“If there is an imbalance between supply and demand in the labor market, the consequence is more inflation,” said Chetoouane.
Migrants in the United States work in the agricultural and services sector. Then, he stressed, “the best way to encourage local people to work in these sectors is to increase salaries.”
Duty
On the impact of tariffs, although they will also generate a price increase, this phenomenon will be temporary, said Chetoouane.
He also noted that its implementation will be gradual to avoid a greater economic impact.
“If there is a shock in the rates, this can be compensated with the exchange rate,” Chetouane said.
President Trump intends to increase the consumption of products elaborated in the United States, something that Natixis managers do not see viable.
“The United States cannot produce all products in its territory. If they produce all the products that matter, inflation will rise in a very aggressive way, ”said Chetoouane.
Natixis managers agreed that the imposition of tariffs is a mechanism of President Trump to force other countries to negotiate, including their commercial partners.
