CSN reports that a bank boss has warned of the ‘high likelihood of recession’ in Spain due to Trump’s unpredictable tariffs.

The boss of the Spanish bank Unicaja warned that a recession is likely in Spain as well as globally due to Trump’s trade war. He cited growing economic instability, and unpredictability of financial conditions.

CEO Isidro Rubiales pointed to a ‘high probability of entering a recession’ due to what he described as a ‘changing and highly demanding environment’. 

He highlighted the current level of insecurity on international markets. Recent developments have shaken investor trust and put pressures on governments and financial institutions.

His comments are part of a larger concern amongst economists and financial experts who have noticed increased volatility in the global economic environment.

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Geopolitical tensions, and changing trade dynamics were the main factors.

This volatility is largely due to the ongoing US President Donald Trump trade war, which continues impacting international relations and supply chains.

Central banks will continue to raise rates in order to fight inflation.

This tightening of monetary policy also increases the risk that economic activity will be further slowed.

Rubiales also said that geopolitical instability in the world, notably in Eastern Europe and Middle East, disrupts trade flows and adds further strain to global economies.

He warned of the potential negative impact that the combination of problems could have on corporate investments and consumer buying power.

As a result, the inflation rate is likely to rise, as many countries, including Germany, introduce ambitious spending programs on infrastructure, economic recovery and defense. These packages, while designed for long-term stability may increase prices in short time.