Inflation, elections and war dominated 2024 By Reuters

By Simon Robinson

(Reuters) – Inflation has fallen in most of the world’s economies in 2024, but voters don’t care.

Enraged by the massive rise in prices of everything from eggs to energy over the past few years, parties have punished incumbent parties at almost every opportunity. The pain of inflation continues and the ruling parties take the blame in election after election.

In the United States, high costs helped Donald Trump win a second term as president four years after he was voted out of the White House and then falsely claimed election fraud. His supporters failed in their attempt to overturn Trump’s defeat by storming the US Capitol on January 6, 2021. This year, they made their voices heard at the ballot box, paving the way for a new American leadership that will test democratic institutions and relationships at home. abroad.

Inflationary anti-government sentiment also led to the formation of new governments in Britain, Botswana, Portugal and Panama. South Korean voters controlled President Yoon Suk Yeol, bringing the opposition to power in parliament. In early December, the president declared martial law; this was a move that the National Assembly quickly reversed. The elections also shook France, Germany, Japan and India.

The only place where there is no change: Russia, where Vladimir Putin was re-elected president with 88% of the vote, a record in post-Soviet Russia.

Moscow continued to wage its war against Ukraine, making significant territorial gains. The question is what impact Trump’s return to the White House will have on the conflict. He promised to end the war in one day. Many in Ukraine and elsewhere in Europe fear this would mean siding with Putin and freezing the status quo.

In the Middle East, Israel continued its war against Gaza and expanded its war into Lebanon; where it left the Iran-backed Hezbollah damaged and in disarray. In Syria, a well-coordinated group of rebel groups overthrew Bashar al-Assad and is now trying to rule the country.

In business, companies around the world are grappling with how to adapt to artificial intelligence. The dominance of technology companies for investors can be summed up by this simple fact: Seven technology companies, called the Magnificent Seven, now account for more than a third of the S&P 500’s market value.

Elon Musk, who manages one of these companies, Tesla (NASDAQ:), is an advisor and financial supporter of President-elect Trump. Looking ahead, this combination of technological fraternity mojo and political power may well define 2025.