Interestingly though immediately after the leadership transition takes place, we typically see growth rebound. This phenomenon could reflect a number of factors. “Firstly, in the lead up to leadership transitions the focus may shift away from the economy and turn to who will be the next leaders and holders of key government positions. Once this is all in place, the focus shifts back to the economy.” He notes.
Improving economic growth after leadership transitions may also reflect reforms introduced by the new government. Broader cyclical developments in the global economy will also be influential, particularly at the last leadership transition in the early 2000s.