Shifting macroeconomic and geopolitical dynamics are posing significant challenges to business confidence worldwide, according to a new report from Marsh.
The 2024 Political Risk Report, published on Tuesday by Marsh Specialty, delved into the key trends expected to influence multinational corporations and investors throughout the year.
It said issues with macroeconomic competition and geopolitical tensions are expected to bring long-term uncertainty to businesses, resulting in “greater economic divergence between sectors and economies.”
This divergence is set to occur amid increasing government interventions and a rise in less predictable security disruptions, according to Marsh.
Despite the volatility, the report did identify opportunities for global growth, as long as organizations are able to manage these emerging risks.
Marsh highlighted the role that voters will play on influencing domestic economic issues and international security during this election year.
It also underscored the risks associated with the misuse of artificial intelligence (AI) by various actors, including non-state entities, adversarial states, politicians, and individuals, to propagate false information, thereby aggravating policy uncertainty and political violence risks.
“The outcomes of the elections taking place this year are set to direct the course of global events for the next decade and beyond,” said Robert Perry, global political risks & structured credit leader at Marsh Specialty.
“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.”
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