Geopolitical Shifts and Fintech Innovations: How Will They Shape the Global Economy in 2024?

In the intricate web of global economics, every fluctuation, every innovation, and every geopolitical shift sends ripples that can either fortify or destabilize the foundation of our financial systems.

With the global economy still on the path of recovery from the COVID-19 pandemic, Russia’s invasion of Ukraine and the ongoing conflict in the Middle East, economic growth has slowed and more and more people have turned to new ways of investment, since clients’ trust on traditional financial institutions has also declined.

According to the International Monetary Fund’s latest projections, world economic growth will slow from 3 percent in 2023 to 2.9 in 2024, while J.P. Morgan Research forecasts global core inflation will remain sticky at around 3% in 2024. Furthermore, the cost of living in the EU continues to rise much faster than wages, impacting the social fabric and creating a growing sense of insecurity among consumers and investors.

We are only a few months into 2024, but we can safely predict that geopolitical tensions will continue to pose the greatest threat to the global economy and energy markets in particular. The recent attacks in the Red Sea are proof of this as they have already disrupted shipping through the Suez Canal, further exacerbating an already precarious situation. And despite all the talk about electrification and green energy, oil is still the lifeblood of the world's economy, and any potential threat to supply is immediately counterbalanced by price increases on the spot markets. Of course, the geopolitical developments are also expected to affect stock markets, with World Economic Forum economists predicting an 80% increase in stock market volatility over the next three years.

In parallel to geopolitical shifts, the financial technology (fintech) revolution is still reshaping how we transact, invest, and access capital. From mobile payment platforms to blockchain-based solutions, fintech innovations are democratizing financial services and challenging traditional banking models. And with the continuous rise and adoption of generative AI, significant shifts and new challenges are in store for businesses, policymakers and customers.

Cryptocurrencies and online trading platforms will remain at the forefront of fintech disruption in 2024. Bitcoin and its brethren have captivated both retail and institutional investors, offering a hedge against inflation and a speculative bet on the future of money. And according to a recent report, Bitcoin is expected to reach a new record of $88,000 (€82,000) throughout 2024, while over the last 12 months, Ethereum has risen around 63.5%, Polkadot and Cardano have gained over 100% since October 2023, and Solana has outperformed them with six-month gains of 650%.

Simultaneously, CFD online trading platforms, like Limassol-based Libertex, are offering CFD trading with underlying assets such as cryptocurrencies, stocks, commodities and others. Online traders should always remain a step ahead on their strategies by anticipating global economic changes and reducing the risks and effects that market volatility can have on their assets. The key here is knowledge, which leads to a proactive mindset, along with investment diversification.

In conclusion, the current state of the economy is defined by a delicate balance between geopolitical realities and fintech disruptions. Navigating these turbulent waters requires a blend of strategic foresight, regulatory agility, and technological innovation. And at Libertex, they believe that by embracing change while safeguarding stability, they can navigate the current landscape.

About Libertex

Libertex is a Limassol-based online broker offering tradable CFDs, with underlying assets being commodities, foreign exchange, exchange-traded funds (EFTs), cryptocurrencies and more. Libertex also offers commission-free investments of real stocks. Its innovative trading platform has won multiple international awards and distinctions, its most recent accolades including “Best Trading Experience” (Ultimate Fintech Awards, 2023) and “Best CFD Broker” (World Finance Forex Awards, 2023).

Placing great emphasis on modern practices while utilising the latest technological advancements, combined with the expertise and experience of its staff, Libertex has not only established itself as a successful and reliable financial institution but has also helped shape the online trading industry by merging tech sophistication, market movements and digital trends. To keep up with financial news and particularly their effects on the online trading market, you can always visit Libertex’s regularly updated blog.