Election Year Economics: What’s at Stake for Your Wallet
As the world gears up for a “super election year,” with over 60 countries going to the polls, voters are prioritizing economic growth and stability. But despite a strong economy, many people are feeling increasingly pessimistic about their financial prospects – a phenomenon known as a “vibecession.”
Investors Stay the Course
Surprisingly, this negative sentiment hasn’t translated to investment decisions. According to Dan Houston, CEO of Principal Financial Group, which serves 68 million clients worldwide, investors are sticking to their long-term strategies. “Our members are staying the course, and they know that they’re well served to stay in a well-diversified portfolio,” Houston said in an exclusive interview.
The Global Financial Inclusion Index
Principal’s Global Financial Inclusion Index, which tracks financial inclusion in over 40 markets, reveals that the U.S. has slipped three places to 7th overall. Singapore and Hong Kong lead the pack, thanks to their adoption of digital financial transactions and emphasis on financial literacy. “The U.S. is treading water, while other countries are making progress,” Houston noted.
Economic Outlook for 2025
The outcome of this year’s elections will have a significant impact on global financial inclusion. As Houston put it, “The policies that come out of these elections will play a key role in shaping the economic outlook for 2025.” With so much at stake, it’s essential to stay informed and take control of your financial future.
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