The macroeconomic & geopolitical insecurity undermines the business confidence in 2024

19 March 2024 — Andrei VICTOR
According to the 2024 Political Risk Report recently released by the global insurance broker Marsh, despite continued volatility and uncertainty, there are substantial global growth opportunities that organizations may benefit from, if these risks are managed effectively.

The mentioned report cites how long-term uncertainty – in what is globally the biggest election year in history – is stemming from macroeconomic competition and geopolitical insecurity. This will create even greater economic divergence between sectors and economies, amid growing government intervention and the increasing frequency of harder-to-predict disruptive security events.

According to the report, a record number of voters heading to the polls this year are likely to focus on internal economic and international security concerns. In addition, the weaponization of artificial intelligence (AI) by non-state groups, adversarial states, politicians, and individuals to amplify misinformation and disinformation will further exacerbate policy uncertainty and political violence risks for organizations and investors.

The report also states that fragile macroeconomic conditions in the wake of the 2024 elections will be further stressed by high debt levels among companies and governments. This, combined with potential weak growth in advanced geographies, could disrupt governmental investment policies and contribute to heightened credit, supply chain, and business interruption risks for organizations.

“The outcomes of the elections taking place this year are set to direct the course of global events for the next decade and beyond. While the world feels like a riskier place in such a time of such macroeconomic and geopolitical uncertainty, businesses that effectively manage and transfer risks in this rapidly changing environment will be well-positioned to seize on future growth opportunities and continue to thrive”, said Robert Perry, Global Political Risks & Structured Credit Leader, Marsh Specialty.