[News Terms] The 2024 'Policonomy' Where Politics Shakes the Global Economy

Policonomy. If we were to summarize the year 2024, when more than 4 billion people?over half of the world's population?will go to the polls, in one word, it would be this.

Policonomy, a compound of ‘Politics’ and ‘Economy,’ refers to the phenomenon where political influence grows and dominates the economy. Simply put, it describes a situation where politicians flood the public with various pledges to win votes, causing a country's economic policies to be shaken. It can be seen as having a similar nuance to populism.

According to The Economist, elections are scheduled in 76 countries worldwide in 2024. Among these, about 40 countries will hold nationwide elections, such as South Korea’s 22nd National Assembly general election on April 10. Notably, elections are planned in 8 of the world’s top 10 most populous countries?including India, the United States, Indonesia, Pakistan, Bangladesh, Russia, Mexico, and Japan?meaning more than 4 billion people, over half the global population, are expected to be registered voters.

Elections and the economy are inseparable. When the head of state or government changes, major policies and economic directions inevitably shift. For us, the general election serves as a barometer to predict the direction of the Korean economy. If the ruling party wins this election, the key economic policies of the Yoon Suk-yeol administration will gain momentum; however, if the opposition wins, the drive to push these policies forward will weaken.

For export-driven countries like ours, election outcomes in major countries can also have an impact. The U.S. presidential election scheduled for November is a prime example. If President Joe Biden, who has strongly expressed his intention to seek re-election, succeeds, economic policies are likely to continue as they are. However, if former President Donald Trump is elected again, it is expected to have a significant impact not only on the U.S. economy but also on the global economic order. Among Trump’s pledges, particular attention should be paid to those focused on economic policies aligned with America First, emphasizing protection of domestic industries and consumers. If Trump is elected and abolishes Biden’s key policy, the Inflation Reduction Act (IRA), as pledged, Korean automobile manufacturers and battery companies could also be greatly affected.

This content was produced with the assistance of AI translation services.