Increasing Volatility Expected in Global Economy as Military Conflicts and Economic Uncertainty Influence National Elections

Next year could see increasing volatility as persistent military conflicts and economic uncertainty influence voting in national elections across the globe.

Instability in the World Economy

The attacks on crucial shipping traffic in the Red Sea straits by a determined band of militants in Yemen — a spillover from the Israeli-Hamas war in Gaza — are injecting a new dose of instability into a world economy already struggling with mounting geopolitical tensions.

The risk of escalating conflict in the Middle East is the latest in a string of unpredictable crises, including the Covid-19 pandemic and the war in Ukraine, that have landed like swipes of a bear claw on the global economy, smacking it off course and leaving scars.

Wave of National Elections

As if that weren’t enough, more volatility lies ahead in the form of a wave of national elections whose repercussions could be deep and long. More than two billion people in roughly 50 countries, including India, Indonesia, Mexico, South Africa, the United States and the 27 nations of the European Parliament, will head to the polls. Altogether, participants in 2024’s elections olympiad account for 60 percent of the world’s economic output.

Mistrust in Government and Economic Anxiety

In robust democracies, elections are taking place as mistrust in government is rising, electorates are bitterly divided and there is a profound and abiding anxiety over economic prospects.

Source: The New York Times