Conflicts will continue to dominate geopolitics in 2024 – Standard Chartered

FXStreet Insights Team FXStreet

The incidence of violent conflict has been multiplying globally. Conflicts from Ukraine to the Middle East – and beyond – will dominate in 2024. Strategists at Standard Chartered report.

Global fragmentation will remain a central theme

The war in Ukraine and the Israel-Hamas conflict will continue to have profound implications for global policy and geopolitics. They will demand significant policy bandwidth from major powers, most notably the US. In addition, they will further strain fiscal positions in the US and Europe (both directly and indirectly) at a time when fiscal and debt dynamics are increasingly constrained.

Recent conflicts are reinforcing the pre-existing trend of global fragmentation. As much of the developing world aligns itself against Israel and the US in the current conflict, this may weaken US efforts to increase its global influence, while strengthening the China-Russia axis.

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