As we bid farewell to 2024, political upheavals leave economists around the world “worried”

With the end of the year approaching, economists are not looking forward to 2025 as volatile numbers are seen in the euro, the dollar and even the won, caused by global political chaos.

It is not only in Europe that the installed political chaos, which brought down the French and German governments and will have repercussions on the European economy, is being felt.

The brief imposition of martial law in South Korea on Tuesday served as a alert to investorsreminding them that political uncertainty continues to be a risk for world markets, says the

Not Asian country, the won, the country’s currency, sank about 3% against the dollar. Although South Korean markets have stabilized, analysts say that the measures taken by the President could have widespread repercussions and affect investor confidence.

“South Korea faces a period of political instability which will affect confidence in the economy,” he said Mark WilliamsAsia economist at Capital Economics, on Tuesday.

E Economists still view the USA with suspicion. The protectionist measures that Donald Trump promises to adopt will not benefit anyone except Americans.

Trump even warned about the imposition of higher tariffsnot only against its most direct economic rivals, such as China and other countries that have threatened to abandon the dollar, but also against its own closest allies and trading partners, such as the Canada and Mexico.

Barclays estimates that, if fully implemented, Trump’s tariff threats against Canada and Mexico could reduce the profits of companies in the S&P 500 stock market index em 2,8%most likely affecting share prices.

But also in Europe, the political crisis, which is spreading to two of the largest economies in the world, Germany and France, is expected to cause financial instability.

Motions of censure against Barnier’s government were responsible for an increase in currency volatility. The euro lost 1% against the US dollar following the announcement of the motion of censure earlier in the week.

“Looking to the future, we expect French bond yields (known as OAT) to remain quite volatilereinforcing our current underweight position in European fixed income portfolios”, commented BCA in a note to which Business Insider had access.