Global Inflation Decline Fails to Sway Voters, Sparks Political Upheaval in 2024

Despite a drop in inflation across most economies in 2024, the lingering pain of high prices over recent years led to widespread dissatisfaction among voters. This discontent resulted in a series of anti-incumbent electoral shifts worldwide, with ruling parties taking the blame in numerous elections.

Key Political Developments

1. United States:
   • Donald Trump Returns: Donald Trump secured a second term as President, capitalizing on frustration over higher costs. This victory comes four years after his controversial departure from office and the fallout from the January 6 Capitol attack. His return raises questions about the resilience of U.S. democratic institutions and international relations.
2. Europe:
   • Elections Shake France and Germany: Anti-incumbent sentiment drove political changes in two of Europe’s largest economies.
   • Britain: A new government was elected, reflecting voter dissatisfaction with economic challenges.
3. Asia and Beyond:
   • South Korea: Opposition parties gained power in the parliament, creating friction with President Yoon Suk Yeol. His brief imposition of martial law was swiftly overturned by the National Assembly.
   • Japan and India: Elections brought significant political shifts, highlighting regional voter dissatisfaction.
4. Middle East:
   • Israel: Continued its military operations in Gaza and expanded them to Lebanon, targeting Iran-backed Hezbollah.
   • Syria: Rebel groups overthrew President Bashar al-Assad, initiating efforts to establish a new government.
5. Russia:
   • Putin Re-Elected: Vladimir Putin secured an overwhelming 88% of the vote, continuing his tenure as Russia’s president and escalating the conflict in Ukraine.

Business Landscape

• AI Dominance: Businesses worldwide grappled with adapting to artificial intelligence. The “Magnificent Seven” tech giants, including Tesla, accounted for over one-third of the S&P 500’s market cap.
• Elon Musk’s Role: Tesla CEO Elon Musk emerged as an adviser and financial backer to President-elect Trump, positioning himself at the intersection of tech innovation and political power.

Global Implications

• Ukraine Conflict: Trump’s promise to end the Ukraine war in a day raises concerns of a potential deal favoring Russia, freezing territorial status quos.
• 2025 Outlook: The blend of technological dominance and shifting political landscapes, spearheaded by figures like Trump and Musk, is poised to shape the upcoming year.