In a recent blog post, PwC Netherlands Chair Agnes Koops-Aukes and Chief Economist Barbara Baarsma argue that during periods of unpredictability, trust is what keeps the economy on track.
"In fact, trust becomes more valuable and more necessary precisely when uncertainty is at its peak," they write. PwC's Economic Policy Uncertainty (EPU) Index, released earlier this summer, showed a sharp rise in unpredictability due to tariff shocks and budget upheavals. Research demonstrates that such uncertainty leads to "delayed investments and more cautious consumer behavior," the authors explain. Companies have shifted "away from long-term strategies, opting instead for short-term or tactical responses such as price adjustments or simply postponing decisions."
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