Summary:
Donald Trump's protectionist policies promise to raise tariffs significantly on imports.
Rising living costs were a top concern for voters in over 60 countries.
Bitcoin's price skyrocketed, surpassing $100,000 post-election.
Efforts to regulate Big Tech intensified globally, with significant actions taken against Elon Musk.
China implemented monetary policy changes to stimulate its lagging economy.
The year 2024 witnessed a significant stabilization in the global economy following the COVID-19 pandemic, despite many nations still lagging behind pre-2020 growth levels. As over 2 billion people cast their votes, rising living costs emerged as a primary concern worldwide.
Trump Signals New Trade Wars
Donald Trump, having secured a second presidential term, indicated plans to implement aggressive protectionist policies. He proposed imposing tariffs exceeding 60% on Chinese goods and a 20% blanket tariff on all imports. Economists warn that such measures could drastically increase everyday costs in the US and disrupt global supply chains. Trump even threatened a 100% tariff on BRICS nations if they pursued a rival currency to the US dollar.
Loading containers at a Chinese port on December 10, 2024 [AFP]
Regulating Big Tech
2024 saw global efforts to regulate Big Tech. The EU's Digital Services Act and Digital Markets Act came into effect, enhancing user control over personal data. The AI Act was passed, regulating AI usage based on perceived risks, though many believe a global regulatory consensus is still far off. Notably, Brazil took significant actions against Elon Musk, suspending the platform X for misinformation.
Elon Musk at a meeting with Trump on November 13, 2024 [Allison Robbert/Pool via AP]
Incumbents Punished Over the Cost of Living
In many regions, incumbents faced backlash over cost of living issues. Elections in over 60 countries reflected public dissatisfaction, with parties like Bidenâs Democrats losing ground due to the inflation fallout. Notably, Ireland bucked the trend by supporting its incumbent parties.
Bitcoin Roars Back
Post-election, Bitcoin's price surged from approximately $68,000 to over $100,000. Trump, previously critical of cryptocurrencies, has now pledged to establish the US as the âcrypto capital of the planetâ, promising the creation of a strategic reserve of Bitcoin and appointing several crypto advocates to his administration.
Bitcoin advertisement displayed in Hong Kong on February 17, 2022 [Kin Cheung/AP]
China Wavers on Stimulus
As the world watched, China announced monetary measures, including interest rate cuts and reserve requirements adjustments, attempting to stimulate its economy amidst challenges such as weak consumption and a declining population. Analysts, however, deemed these measures insufficient to meet the 5% growth target for 2024.
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