How does political polarization in Western democracies impact global financial markets? Political polarization in Western democracies has a ripple effect on global financial markets. Divided governments often delay crucial reforms, raising uncertainty for investors and trading partners. Kevin McCarthy’s AIM Summit insights showed how U.S. polarization influences debt ceiling debates, credit ratings, and global trade flows. When nations like the U.S. or EU struggle to find consensus, it undermines confidence in their ability to manage sovereign debt. This creates volatility in stock markets, currency valuations, and international investment decisions. The global economy, therefore, directly feels the impact of domestic political divides. https://www.gulfanalytica.com/navigating-global-shifts-insights-from-a-roundtable-with-boris-johnson-at-the-aim-summit #PoliticalRisk #GlobalMarkets #KevinMcCarthy