The International Monetary Fund released its latest World Economic Outlook this morning. The IMF report projects global economic growth based on a variety of factors, including how political turmoil will affect the global economy.
So how will this weekend’s attack on a Trump rally and assassination attempt on the former president affect America’s standing in the global business community?
Roger Baker of Stratfor, a geopolitical intelligence firm, said while this weekend’s violence alone does not create the impression that the United States is a dangerous place to do business, it is just the latest in a series of politically motivated attacks in recent years.
“The assessment is that while American democracy may not actually have fundamentally collapsed, it certainly has significant cracks,” he said.
That could shake investor confidence, but the U.S. plays a powerful role in global supply chains and the international financial system, according to Jacob Kirkegaard of the Peterson Institute for International Economics.
“There’s no substitute for the dollar,” he said, “so even though you may not like what’s going on in America, you have no choice.”
Kirkegaard added that global business leaders are closely watching the political turmoil in the US, but the hurdles for them to move operations elsewhere are high.
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