The global economy continues on its long, painful rehabilitation from the pandemic. While the worst is clearly over, economic data in recent days shows that the current recovery is fragile. The continuing outbreaks of infections do not help either, as they make consumers and businesses nervous about spending again. In this context, the last thing the world needs is another shock of some kind.
Unfortunately, political risks are growing in many areas, increasing the chance that something untoward could erupt which hurts confidence or creates so much uncertainty that the global recovery loses momentum. What are these risks and how could they unfold?
Two big risks in the US elections
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