Post Election: Observations from around the world

Globally, more than 65 countries held elections in 2024, reflecting nearly half of the world’s population. As the business implications of the elections unfold, we asked our KPMG Board Leadership Centers (BLCs) around the world which issues are likely to get significantly more attention in their country’s boardrooms as a result of the elections.

For companies operating globally—and corporate directors serving on boards in different countries and unique markets—these initial observations can provide helpful multinational context for boardroom conversations in the months ahead.

The negotiations to form a federal government in Belgium are on-going. It is expected that the key themes will include the reduction of the public deficit and debt through cost reduction programs and increased taxes. Considering the need to strengthen the European defense, one might also expect a discussion on the level of investments in military defense. In addition, external trade could be affected by the measures announced by the future US President.

Olivier Macq – Leader, Board Leadership Center – Belgium

Parties on the right and central-right have won most of the mayoral and council elections in Brazil’s 5,569 municipalities. A huge cut on government costs is about to be presented – a rapid growth of mandatory expenses can compromise the government’s maintenance and funding capacity. This fiscal risk linked to the likely review on trade agreements with Brazil’s second business partner, the USA, leaves the exchange market very volatile – the Real was the 7th currency that devalued the most in 2024 compared to the dollar. Brazil is going through a full employment period, which could lead to inflation and an even more heated debate around talent retention. Despite geopolitical risks, Brazilian economy is likely to present positive results because of its strong presence in the commodities sector, especially grains and ores, and its international reserves.

Fernanda Allegretti – Leader, KPMG Board Leadership Center – Brazil 

Given just how highly integrated the Canadian economy is with the US – about 75 percent of all Canadian exports go to the US -- upcoming trade negotiations, potential tariffs, tax competitiveness, and energy security will dominate the discussions in Canadian boardrooms. Canadian CEOs are already revisiting their business strategy, looking for ways to mitigate potential risks and seize opportunities from the expected policy changes in the US. While implementing ESG and decarbonization strategies are high on their agenda, stalled productivity growth in Canada is prompting them to invest in technology and labour. A windfall for exporters, a weakening Canadian dollar however has other implications, including on M&A plans. All this also implies a holding pattern for Directors in the short term to fully incorporate the implications of the moving parts into their decision-making process for organizational investments and strategic direction.

Janet Rieksts Alderman – Chair, KPMG Board Leadership Centre – Canada

Colombia, historically governed by right-wing political forces, is experiencing a shift with a new government bringing reforms across various sectors. This transition is reshaping economic, sustainability, and social equity policies. The private sector has been crucial in the country’s development, increasing investments in sustainability by 17% in 2024, as per the National Competitiveness Report. However, challenges persist, including labor informality, with a 35% gap between rural and urban areas, and limited digital connectivity, as nearly half of the country’s regions have broadband penetration below 10%. Looking forward, boards of directors will need to focus on sustainability goals, reducing inequality, and investing in human capital to address high informality rates and ensure inclusive growth. Collaborating with the government to drive progress on these fronts will be key to building a more equitable and connected society.

Camilo Bueno H – Leader, KPMG Board Leadership Center – Colombia

At the start of a new EU legislative term, the mood in Brussels is sombre. The Draghi report makes clear that the European economy has lost ground and is particularly exposed to growing geopolitical challenges. In response, the European Commission has committed to doubling down on productivity while still trying to hold to existing green commitments. Businesses will welcome the focus on strengthening Europe’s industrial base and closing the innovation gap - although moves to ensure the EU’s strategic autonomy may reverberate on businesses with global operations. Widely demanded, a push to reduce regulatory requirements on companies is already visible but could lead to a more unstable and uncertain legislative framework which boards will need to navigate.

Susanna Di Feliciantonio - Director of Global Public Affairs

The “unexpected” dissolution of the French assembly last June and the fragmented parliament resulting from the summer’s legislative elections, and the recent resignation of the Prime Minister, have plunged the French economy into an increased uncertainty. In 2025, French companies will have to navigate potential changes in taxation, government spending, and regulatory environments that could affect their financial planning, investment decisions and hiring policy. Recent economic studies also warn that business failures could return to their highest level. In this context, board of directors will have a key role to play in helping top management to assess these new challenges, take proportionate measures and above all stay on the strategic plan.

Jean-Marc Discours – Leader, KPMG Board Leadership Center – France

Taking cues from India's national elections held earlier this year, we anticipate an increased focus on regulatory reforms, economic growth, and the evolving dynamics of global trade partnerships. Emphasis on infrastructure development, digital innovation, and sustainability is likely to continue driving boardroom conversations, as companies look to align with government priorities for economic resurgence. A push for self-reliance and localization may continue under country’s under "Aatmanirbhar (self-reliant) and Viksit (Developed) Bharat" agenda. The global context, including the outcome of the US elections and evolving trade agreements with the EU, Australia, and the Indo-Pacific economies, will likely shape strategic discussions around trade, supply chains, and market diversification. Domestically, regulatory reforms such as those targeting corporate governance, tax reforms, and labor laws will continue to demand board attention. Moreover, Talent management will remain a critical area, particularly as boards navigate the interplay of global immigration policies, domestic skilling initiatives, and the rising demand for innovation-driven workforces. With geopolitical shifts reshaping global supply chains, Indian boards must also evaluate their role in the emerging multipolar trade landscape, ensuring resilience and competitiveness in the face of changing global alliances.

Ritesh Tiwari - Leader, KPMG Board Leadership Center – India

As a result of the defeat of the ruling coalition in the October general election, no political party secured a majority of seats in the Diet, resulting in a so-called "hung parliament." This is expected to undermine the speed with which the Diet makes policy decisions. Although attention is focused on whether to adopt a substantive tax reduction policy for non-regular employees, for better or worse, there will be no drastic policy changes since the previous administration. Japanese companies will be more affected by the various policy changes that the Trump administration in the United States, with which they have close economic and political ties, will make.　Preparedness across the entire value chain to cope with rapid environmental changes including a tariff hike in the United States, a stronger dollar and a weaker yen, inflation, and the geopolitical tension between China and the United States is expected to be a concern for CEOs and boards.

Takuya Hayashi – Managing Director, KPMG AZSA LLC – Japan

The first female president in history has marked a milestone in the history of the country. Her triumph has also represented that she will be the most powerful president in the last 30 years as she has won vast majority of congress, which will allow the government to drive constitutional changes. Attention will be placed how these powers will be used by the ruling power, where recent studies indicates that top management have expressed that the main challenge of the country remains in ensuring the state of law, enhancing security and providing economic certainty. The pace of nearshoring, a phenomenon that has been underway for quite a while, has been slow, as investment decisions have been delayed pending the outcome of the US and Mexico elections and new government policies. Focus will also be placed on the US – Mexico bilateral relationships with the new Trump administration and the renegotiation of the trade agreement between Mexico, Canada and the US.

Ricardo Delfin - Leader, Board Leadership Center – Mexico

In the wake of the recent elections across the globe, the national Board Leadership Center (BLC) in Portugal anticipates that several key issues will garner significantly more attention in Portuguese boardrooms. First, the impact of global geopolitical shifts on trade agreements and supply chains will be a central concern. With Portugal's strong ties to both European and international markets, companies will need to carefully consider how changes in tariffs, import/export regulations, and bilateral trade agreements influence their operations and competitive positioning. Second, the focus on environmental, social, and governance (ESG) principles is expected to intensify. As governments and consumers worldwide put more pressure on sustainable practices, Portuguese boards will likely prioritize strategies that align with ambitious climate goals and social responsibility standards. This includes exploring innovative solutions to reduce carbon footprints, advancing corporate social responsibility initiatives, and ensuring compliance with evolving sustainability regulations. The intersection of these global and local factors underscores the necessity for Portuguese boards to stay agile, informed, and proactive in their strategic planning to navigate the complexities of a rapidly changing world.

Paulo Paixão – Leader, KPMG Board Leadership Center – Portugal

Post US elections and the process to conform the new EU Government, the main issue raised in Spain is which role will we play (if any) in the new global landscape. The impact of heavy regulation, not only on ESG matters, may lead to a discussion about European competitiveness and the tools used by other countries to support their industries and services. There are increasing calls for extending the timeline to compliance with EU sustainability legislation in order to protect employment. Additionally, Spain and other European companies are looking for new partners from different geographical areas (Middle East, Gulf countries etc.) for growth strategies and new markets. In Spain, the coalition government (socialists + communists) is preparing tax reforms that are “unfriendly to business" - taxing the financial sector and utilities (and personal wealth).

Pedro Leon Francia Ramos - Leader, KPMG Board Leadership Center – Spain

A change of governing party in the UK – our first in 14 years – is already resulting in a changing policy landscape. The fiscal outlook remains constrained, with UK businesses facing tax rises – from employer National Insurance to Capital Gains Tax – as well as a rising national minimum wage. Proposals to strengthen workers’ rights may also be seen as further headwinds for business leaders. A new Modern Industrial Strategy and National Wealth Fund, along with a growth focus for regulators, will be high on the minds of CEOs, as will a continued push by government to meet its net zero commitments.

Timothy Copnell – Leader, KPMG Board Leadership Center – UK

Heading into the US elections, we were already seeing a sharp focus on tariffs, tax cuts, and fiscal policy—including their potential impact on inflation and interest rates. Tariffs and trade agreements will likely trigger supply chain reconfiguration and increased costs. Curbs on immigration would have implications for talent pools and labor costs and may mean slower growth. And the easing of regulatory burdens and related costs, and the potential for increased M&A opportunities and activity will also be front and center in many boardroom conversations.

John Rodi – Co-Leader, KPMG Board Leadership Center – US