Do Other Countries’ Economies Depend on US Elections?
Audio version available here (1 min. 50 sec.)
As the United States 2024 Election kicks off with early voting, and Election Day just over a week away on November 5th, many look forward to the economic outcome of whichever candidate wins. While we have outlined many of the local economic policies both Donald Trump and Kamala Harris have proposed in our recent video, there are further implications for the international impact this election could hold.
The United States is not the only major country to hold a vital election this year. Other economic powerhouses like Japan, Mexico, Russia, the UK, the European Union, and several more have held elections this year that can greatly impact their economic strength in the coming years. But none are quite as influential as the United States. As the strongest economy in the world, a political change as extreme as a president could cause an international economic shakeup.
Some countries could remain resilient regardless of which candidate ends up in office. Specifically those with economies whose focus stays domestic, like France and Italy. Since they do not rely heavily on global trade, they are more likely to withstand any potential downturns that could come. Likewise, they may not reap as many of the benefits should the world economy see a boost.
Unlike domestically-focused nations, those whose economies depend largely, or entirely, on international trade are at risk. With high tariffs a strong possibility from the election, countries like China, Singapore, and many in Latin America could be in trouble. The same goes for countries who are dependent on outside resources, such as Hungary, the Netherlands and Belgium, as importing would likely become harder if exporting nations are facing economic struggles.
While we don’t yet know who is going to win the election, the effects of potential changes are already being felt domestically. The stock and gold markets are hitting record highs ahead of Election Day, though if they will remain high after the vote is called is yet to be seen. Meanwhile, the global impact from the election could also end up affecting the US back. Until we know for sure who the next President will be, it’s best for American business owners to prepare for economic uncertainty. But you don’t need to prepare alone. We have several resources for business owners linked below.
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