Economics
Citigroup: There's a Whole New Type of Political Risk to Worry About
And it could compound traditional geopolitical struggles.
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Investors have to acknowledge a new set of risks tied to socioeconomic concerns that go far beyond the realm of traditional geopolitical hazards and have the potential to roil economic activity and financial markets. The confluence of new and old political risks threatens to undermine progress made through globalization and foster a rise in conflict between, as well as within, nations.
That's the ominous conclusion of Citi's team of analysts, which includes Tina Fordham, chief global political analyst, Mark Schofield, managing director of global strategy, and Edward Morse, global head of commodities research. They joined forces with Jan Techau, director of the Carnegie Europe think tank, to create a report on global political risk.