In 2024, inflation decreased in most global economies, but voters remained largely unimpressed. The lasting effects of sharp price increases on everyday goods, from eggs to energy, left voters frustrated and led to widespread punishment of incumbent governments. The pain of inflation continued to haunt many, and ruling parties found themselves blamed in election after election.
In the United States, rising costs contributed to Donald Trump’s return to the presidency, four years after his initial loss and his false claims of election fraud. Despite his supporters failing in their attempt to overturn the 2020 election by storming the U.S. Capitol, they made their voices heard at the ballot box in 2024, resulting in a leadership shift that is likely to test both domestic democratic institutions and international relations.
Anti-incumbent sentiment driven by inflation also led to changes in governments in the United Kingdom, Botswana, Portugal, and Panama. In South Korea, opposition parties took control of the National Assembly, counterbalancing President Yoon Suk Yeol’s power. In December, the president declared martial law, only for it to be quickly overturned by the National Assembly. Elections in France, Germany, Japan, and India also brought shifts in leadership.
However, one country where there was no change was Russia, where Vladimir Putin was re-elected president with 88% of the vote, marking a post-Soviet record. Moscow’s war against Ukraine continued, with notable territorial gains, and much of the world wondered how Trump’s return to the White House would affect the conflict. Trump has promised to end the war swiftly, but many fear this could mean siding with Putin and freezing the current situation.
In the Middle East, Israel extended its war with Gaza into Lebanon, weakening the Iran-backed Hezbollah. In Syria, a coalition of rebel groups succeeded in toppling Bashar al-Assad and now seeks to govern the country.
In the business world, companies continued to navigate the rise of artificial intelligence. The dominance of tech firms was evident, with the so-called “Magnificent Seven” now representing over a third of the S&P 500’s market capitalization. Elon Musk, who heads one of these tech giants, Tesla, also emerged as an adviser and financial supporter to President-elect Trump. This blend of technological influence and political power is expected to play a significant role in shaping 2025.
