Why the economy needs Trump, according to senior economic advisor David Malpass

Election offers clear economic choice: David Malpass

From Wal-Mart to the Federal Reserve to the International Monetary Fund, there are new signs the U.S. economy is on the wrong track, a senior economic advisor to the Donald Trump campaign told CNBC on Thursday.

To make his point, David Malpass cited conservative news from Wal-Mart that broke just before his appearance on "Squawk Box."

The giant retailer on Thursday morning reiterated its guidance for the current fiscal year, and said there would be fewer store openings than originally planned and a significantly slower store-opening pace in fiscal 2018. It also predicted flat earnings next year.

"The election presents a choice. Do you want the current policies, which Wal-Mart has given us a very clear forecast [of] ... or do you want some different for the U.S.?" asked Malpass, president of economic and market research firm Encima Global.

Malpass accuses Democratic nominee Hillary Clinton of advocating the status quo from the failed years of President Barack Obama that's produced just 2 percent economic growth.

"Trump is saying that's 'definitely not good enough for workers in America, for small business, for minorities. This system that they're doing is simply failing.' We have to have massive change," Malpass said.

As more ammunition for his argument, Malpass pointed to the Fed's reduction in projected full-year gross domestic product to 1.8 percent, following its September policy meeting, at which central bankers held interest rates steady.

Malpass said the IMF's new forecast for growth this week add to the urgent need for the GOP presidential nominee's ideas to boost the economy. "That's the whole point of the campaign — to change taxes [and] regulatory policy."

On Tuesday, the IMF said advanced economies, including the U.S., will slow this year to 1.6 percent growth, compared with 2.1 percent last year and the group's July forecast of 1.8 percent.

"Think of all the benefits that come from faster growth," Malpass said. "As you grow faster, Wal-Mart does better, everyone does better."