Why markets like to see new political faces
Whether a government is weak or strong, left or right, doesn’t seem to matter much for economies, but new leaders are associated with higher growth and returns.
It has long been clear that 2024 would be a historic year for democracy, with more than 30 national elections worldwide. But only in the last few days have commentators started to focus on the economic impact of these battles.
Sharp market reactions to the results in India, Mexico and South Africa have raised some basic questions. Do economies perform better under a strong majority government or a broad coalition? Under a party of the left or the right? Under an incumbent leader or a fresh face?
Financial Times
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