Populist nationalist movements are on the rise: What could this mean for the global economy

Kristina Hooper discusses how geopolitical risks, especially populism and nationalism, can impact institutional investors.

Feb 22, 2019 | Kristina Hooper

A recent informal poll by Invesco of institutional investors found that geopolitical risks were their top concern in 2019. These risks can have a direct impact on economic growth. Among them, the rise in civil discontent has manifested itself in populist, nationalist movements that have focused on the perceived damage created by globalization.

In her latest commentary, Chief Global Market Strategist Kristina Hooper explains that the twin forces of populism and nationalism can have a real impact on the global economy. Not only can they result in de-globalization, they can also destabilize global institutions while rejecting expertise that is crucial in buffering economic growth from negative developments. 

There’s a silver lining, however – central banks around the world can act as a stabilizing force amid geopolitical uncertainties, as seen in the case of the European Central Bank and the US Federal Reserve’s responses to unfolding crises in their respective economies.


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