In 2024, while inflation cooled across most global economies, its lingering effects continued to shape political landscapes, leading to significant changes in leadership. Despite inflation subsiding in many countries, the public’s anger over the sharp increase in prices over the past few years remained a driving force in elections around the world. Voters, still reeling from rising costs for everyday essentials like food and energy, punished incumbent parties, holding them accountable for the economic hardship they experienced.

One of the most striking outcomes of this anti-incumbent sentiment was the rise of new political leadership in numerous countries. In the United States, inflation played a pivotal role in the return of Donald Trump to the presidency. Despite being ousted in 2020 and falsely claiming election fraud, Trump’s supporters returned in full force. This resurgence was largely driven by voter dissatisfaction with high inflation rates, which contributed to a shift in power. As a result, the U.S. saw a dramatic change in its political direction, with Trump’s second term likely to test both the nation’s democratic institutions and its relationships with other countries.

Similarly, inflation-driven discontent spurred political shifts in Europe and beyond. The United Kingdom, Portugal, and Panama saw the rise of new governments, all of which were fueled by public frustration with economic conditions. In South Korea, the opposition gained significant power in the parliament, creating a crucial check on President Yoon Suk Yeol’s authority. The president’s imposition of martial law in December, though swiftly reversed by the National Assembly, highlighted the volatile political environment created by the rising economic pressure.

Elsewhere, elections in France, Germany, Japan, and India all reflected the broader trend of voters turning away from incumbents due to economic dissatisfaction. However, the situation was starkly different in Russia, where President Vladimir Putin was re-elected with a staggering 88% of the vote, setting a record in post-Soviet Russia. Despite global political shifts, Putin’s grip on power remained unchallenged, and Moscow’s ongoing war against Ukraine continued to dominate international headlines.

The Russian conflict, however, took on a new dimension with the rise of Trump back in the U.S. presidency. Trump’s promise to end the war “in a day” raised concerns in Ukraine and Europe about his potential alignment with Putin, signaling that the U.S. may adopt a more conciliatory stance towards Russia. This prospect brought uncertainty to the geopolitical landscape, as many feared that a return to the status quo with Putin could have far-reaching consequences for international stability and security.

In the Middle East, the conflict between Israel and Gaza escalated further, with Israel expanding its military operations into Lebanon, where Hezbollah, backed by Iran, faced significant damage. Meanwhile, in Syria, rebel groups successfully overthrew Bashar al-Assad’s regime, altering the power dynamics in the region. These developments, alongside Trump’s return to power, suggested that 2025 could see a realignment of international alliances and political strategies, particularly in the volatile Middle East.

While the political landscape shifted dramatically, the world of business also underwent significant transformations. In 2024, artificial intelligence (AI) emerged as a central theme for companies around the world, forcing businesses to adapt to the rapidly evolving technological landscape. Among the most notable players in the tech world were the so-called “Magnificent Seven” — seven major tech companies that now account for over a third of the S&P 500’s market capitalization. These companies, led by figures like Elon Musk, continued to dominate both the tech industry and investor attention.

Elon Musk, in particular, played a prominent role as an advisor and financial backer to President-elect Trump, raising questions about the future intersection of technology and politics. Musk’s influence, combined with Trump’s political power, suggested that 2025 could be defined by a fusion of Silicon Valley’s technological dominance and political leadership, reshaping the way both business and government interact on a global scale.

As the world entered 2025, the lingering effects of inflation and political upheaval promised to continue shaping the course of events. From economic dissatisfaction driving electoral shifts to the looming geopolitical uncertainties, the year ahead was poised to bring both challenges and opportunities. In the U.S., Trump’s return to office, along with the growing influence of tech magnates, set the stage for a potentially transformative period, one where the worlds of business, technology, and politics would be increasingly intertwined. The extent to which these shifts would impact global stability and prosperity remained to be seen, but the forces of change were unmistakably in motion.

(Adapted from Reuters.com)