Global Shifts in Politics and Economy Amid Rising Inflation and Changing Governments
Inflation played a significant role in shaping the political landscape of 2024, with rising costs affecting citizens across the globe. Although inflation dropped in most economies, public anger over soaring prices led to significant political changes, with incumbent governments facing backlash in election after election.
In the United States, inflation was a key factor in Donald Trump’s return to the presidency after being ousted in 2020. His supporters, who had failed to overturn election results previously, made their voices heard at the ballot box, ushering in a new political era that could challenge democratic institutions and international relations.
The wave of anti-incumbent sentiment caused by inflation also led to leadership changes in countries such as Britain, Botswana, Portugal, Panama, South Korea, France, Germany, Japan, and India. South Korea saw a power shift with the opposition gaining control of the parliament, challenging President Yoon Suk Yeol’s authority. Meanwhile, in Russia, President Vladimir Putin secured a record-breaking 88% re-election victory while continuing the war in Ukraine.
In the Middle East, Israel’s war against Gaza extended into Lebanon, weakening Hezbollah. Meanwhile, in Syria, a coalition of rebel groups overthrew Bashar al-Assad.
On the business front, the rise of artificial intelligence continued to reshape industries, with tech companies like Tesla, led by Elon Musk, holding significant influence over the market. Musk’s connection to President-elect Trump raised questions about the intersection of political and technological power in 2025.
