The Third Certainty: Political Uncertainty and Its Impact on Business

We are often told there are two certainties in life. Death. And taxes.

But for anyone with even the faintest interest in political affairs, it could seem that a global political landscape shrouded in turbulence is another certainty in today’s world.

Should we navigate, avoid, or encourage conversations in respect of this present reality within the context of our ability to provide legal advice? (HR specialists, time for earmuffs) … the answer is, absolutely.

A fractured and uncertain political landscape will, at the very least, lead to economic uncertainty. It doesn’t take more than a basic understanding of economics to accept that political uncertainty leads to economic uncertainty, and nothing scares investors more than uncertainty.

However, decisions being made by governments and heads of states around the world are directly impacting businesses across numerous sectors in different ways. Tariffs, wars, sanctions; just some of the obvious examples.

Consider a fund that invests in a growing middle-class property market of a developing country. Let’s consider that country’s political climate is considered to be stable. Cue a string of political scandals, elections are called and a party with vastly contrasting economic views is elected. An obvious link exists, and one might expect a call to immediately review that fund’s constitutional documents.

At Gilson Gray, we understand that to best service our clients’ needs, we need to understand our clients’ business. We are more than lawyers; we also occupy the trusted advisor role. A necessary component of this requires us to fully understand potential risks to our clients’ business and to put it simply, the impact of political events around the globe are relevant. For rounded, commercial and informed advice, please reach out to us and let us help your business navigate these uncertain times.

Contact us today to find out how Gilson Gray can be the right advisor for you.