So much has changed in the last few years. The world has had to deal with a pandemic, two devastating wars, and economic pressures in the form of high inflation and dim prospects for growth. Few analysts believe in a return to the normality of a decade ago anytime soon. 2024 is likely to be characterised by volatility and uncertainty.

At the local level, the consequences of high inflation on households are the most challenging items on the government’s agenda. Despite subsidies on energy products and services, many families are still struggling to cope with the escalating costs of basics, including essential food items.

In a free-market environment, it is not easy to introduce price controls to minimise the risks of price gouging by some businesses. Still, more work needs to be done by policymakers to protect consumers from the abuse of businesses that have a dominant position in the market.

Next year, the new European Stability Mechanism rules will become effective. Despite Malta’s economic growth being higher than the EU average, the sustainability of the country’s economic model remains doubtful. The government has sheltered the economy from the worst consequences of the harsh global geopolitical realities by increasing the national debt to subsidise essential services like energy. It is clear that this cannot be done forever.

So far, the quest for new economic activities has not produced many convincing results. The economy remains dependent on a gaming industry that thrives on low taxation, mass tourism, and a construction industry that keeps destroying the urban and rural environment. The inertia that prevents policymakers from defining a new strategy backed by a credible action plan for economic reform must be addressed with more determination.

Democracy and the rule of law will be on the ballot in the US in November, and the world will be watching that election very closely

The global geopolitical environment continues to be a cause of great concern. There is still no clear indication when the Russia-Ukraine war will end so that Europe can focus on implementing its agenda for economic renewal to energise the Union’s stuttering economies. While support for Ukraine must continue in Europe and the US, a political solution also needs to be explored.

Hopefully, the new European Commission that will be in place in a few months will address the economic and political risks that the EU faces by reforming its governance framework to bring about positive change in the lives of millions of struggling Europeans.

The Israeli-Hamas war is another unresolved challenge that the world will inherit in the new year. Israel’s unacceptably harsh response to the Hamas terror attacks of October 7 could lead to conflagration in the whole region and beyond. The international community, but especially the United States, must do more to exert pressure on Benjamin Netanyahu to change his despicable behaviour and accept a permanent ceasefire in Gaza. And more needs to be done to bring about a two-state solution to this terrible conflict.

The US presidential election will also affect how 2024 is likely to end. The growth of populism in democratic countries has put some demagogue politicians in positions of power that can threaten the well-being of millions of global citizens.

In a nutshell, democracy and the rule of law will be on the ballot in the US in November, and the world will be watching that election very closely – and hoping that common sense and democratic values prevail.

The absence of credible global political leadership is arguably the most daunting challenge in 2024.

Put simply, the world needs politicians who act more like statespersons and care for those who elected them to lead in times of uncertainty and volatility.