How does U.S. political violence affect global investors’ confidence?
How does U.S. political violence affect global investors’ confidence?
The International Monetary Fund’s released its latest World Economic Outlook this morning. The IMF’s report forecasts global economic growth based on a number of factors, including how political turmoil impacts economies around the world.
So, how might this weekend’s attack at a Trump rally and the assassination attempt against the former president impact the U.S.’s position in the global business community?
This weekend’s violence alone won’t cast the U.S. as a risky place to do business, but it’s just the latest of several politically motivated attacks in recent years, according to Rodger Baker with the geopolitical intelligence firm Stratfor.
“Really, it is the assessment that the U.S. democracy is now maybe not fundamentally broken, but certainly has significant rifts,” he said.
That could shake investors’ confidence. But the U.S. plays a powerful role in global supply chains and the international financial system, per Jacob Kirkegaard with the Peterson Institute for International Economics.
“There is no replacement to the dollar,” he said. And so, “you know, you may not like what goes on in the United States — but you’re kind of stuck with it.”
Global business leaders are keeping a careful eye on U.S. political turmoil, Kirkegaard added. But the threshold for taking their business elsewhere is high.
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