Geopolitical Risks and the Global Economy

With the ongoing war in Ukraine and the conflict between Israel and Hamas in the Middle
East further complicated by Houthi missile attacks on ships in the Red Sea, geopolitical
developments appear to be a key determinant of global economic performance in 2024. In
addition, elections around the world are likely to have a significant impact on the direction
of the global economy through not only potential changes in trade and investment policies
but also by increased polarisation. In this Box, we briefly discuss the link between geopolitics
and economic performance, the major geopolitical risks facing the global economy and
how they might affect economies in 2024.