Navigating a fragmented world: implications for investors

Geopolitics are increasingly shaping our world. French asset manager Amundi anticipates escalating geopolitical tensions in the coming years, with deteriorating bilateral relations and deepening alliances among nations such as Russia, Iran, North Korea, and China. The ongoing ‘Great Power Competition’ between the USA and China is expected to persist, leading to increased protectionism, sanctions, export controls, and tariffs, which may intensify economic frictions.

 “The countries benefitting from geopolitical changes will become more apparent in 2025, for example, due to a surge in exports as they sit on new transit routes,” said Anna Rosenberg, Head of Geopolitics, Amundi Investment Institute.

Amundi suggests that investors should integrate geopolitical considerations into their economic forecasts and investment strategies, potentially adjusting positions and implementing hedging options to navigate this complex environment.

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