top of page
Writer's pictureInsightTrendsWorld

Insight of the Day: US 2024 Election: Implications for the Global Economy

Findings:

  • The 2024 US presidential election will significantly impact the country’s fiscal, monetary, and trade policies, influencing the global economy. Regardless of the election outcome, the US economy is expected to slow, with 1.7% growth in 2025, down from 2.3% in 2024.

  • A Trump victory could lead to a more protectionist trade agenda, including higher tariffs and trade restrictions, especially targeting China. This scenario risks global economic fragmentation, with trade-dependent economies like Singapore and Hong Kong likely to suffer the most.

  • The global economy is seeing stagnation, with China’s growth slowing to 4.8% in 2024 and 4.4% in 2025, while the Eurozone faces weak growth due to structural issues, expected to grow by 1.5% in 2025.

Key Takeaway: The 2024 US election will shape the future of the US and global economy, particularly if Trump wins, leading to a more fragmented global economy through protectionist trade policies and increased tariffs, which could negatively affect global trade, economic growth, and business confidence.

Trend: The main trend is the risk of global economic fragmentation due to rising protectionism and trade tensions, particularly if Trump’s America-first policies return. This could lead to higher tariffs, disrupted supply chains, and restricted market access globally.

Consumer Motivation: Businesses and consumers alike are motivated by the need for economic stability and market access. A fragmented global economy with higher tariffs and trade restrictions could lead to increased costs for businesses and higher prices for consumers.

What is Driving the Trend:

  • The potential for protectionist trade policies in the US, particularly if Trump wins.

  • Rising trade tensions between the US and China, along with higher global tariffs.

  • Stagnation in global economic growth, with regions like China and the Eurozone seeing weaker growth prospects.

Who Are the People the Article Refers To:

  • US consumers and businesses who will feel the impact of shifts in fiscal and trade policies.

  • Global trade-dependent economies like Singapore and Hong Kong, which are vulnerable to disruptions in global supply chains and market access due to potential trade restrictions.

Description of Consumers' Product or Service: The article focuses on the US economy and the potential impacts of trade policy changes under different election outcomes, particularly the risk of global fragmentation under a Trump presidency.

Age of Consumers: The article does not specify an age range but refers to economies and businesses across the globe that will be impacted by shifts in US and global trade policies.

Conclusions:

The 2024 US election will be a turning point for the global economy. A Trump presidency could trigger economic fragmentation, leading to higher tariffs, disrupted global supply chains, and reduced market access. This would negatively impact trade-dependent economies and slow global growth.

Implications for Brands:

  • Global brands reliant on international trade could face higher costs and supply chain disruptions due to increased tariffs and trade restrictions.

  • Businesses should prepare for a more protectionist trade environment, particularly in sectors heavily reliant on exports and imports.

Implications for Society:

The return of protectionist policies could increase the cost of goods and services, impacting consumers globally. Trade tensions may also lead to economic instability, particularly in countries dependent on international trade.

Implications for Consumers:

Consumers, especially in trade-dependent economies, could see higher prices for goods as tariffs and trade restrictions increase. Economic fragmentation may also lead to reduced choices and slower innovation due to restricted global market access.

Implications for the Future:

If a global fragmentation scenario materializes, businesses may need to restructure supply chains and focus on domestic markets. A Trump victory could lead to heightened trade tensions, disrupting the global economy for years to come.

Consumer Trend:

The primary trend is the risk of global economic fragmentation, which could result in higher costs for businesses and consumers due to protectionist trade policies and escalating trade tensions.

Consumer Sub-Trend:

  • Increased protectionism: A potential shift toward higher tariffs and trade barriers, especially in the event of a Trump presidency.

Big Social Trend:

The rising trend of protectionism across global economies could lead to economic fragmentation, with countries turning inward and reducing international trade, disrupting global supply chains and market dynamics.

Worldwide Social Trend:

Globally, a shift toward protectionist policies and trade tensions could lead to a more fragmented economic landscape, with slower global growth and higher costs for goods and services.

3 views0 comments

تعليقات


bottom of page