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The latest US tariffs are reshaping global trade patterns, hitting some cities harder than others. From Germany’s auto hubs to China’s electronics exporters, which regions will weather the storm and which will struggle?
Our updated analysis shows that the risk of ‘Japanification’ – a lengthy period of low growth and low inflation or deflation – has increased in Asian economies like China but declined in Europe. However, some of the changes may not be permanent. Economies are still settling down after the upheavals of the pandemic and some key underlying drivers of Japanification remain in place.