Geopolitics are unlikely to derail the recovery in 2024 and 2025 – Citi
|Geopolitical risks have clearly increased. Will geopolitical events derail the recovery in 2024 and 2025? Economists at Citigroup analyze geopolitical tensions.
Present geopolitical tensions should not prevent corporate profits from rising in 2024-2025
A study of past geopolitical and military incidents since 1941 reveals that most events have only had a limited impact on markets. The few exceptions, Pearl Harbor, and the Arab Oil Embargo, significantly altered the path of the economy.
Present geopolitical tensions shouldn’t prevent corporate profits from rising in 2024-2025. So far, the events in the Middle East have impacted shipping costs, but not end prices, indicating that supply chains have been able to compensate for the disruption.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.