The world is entering a "geopolitical recession," heralding the end of the U.S.-led global order, according to prominent political analyst Ian Bremmer.
Speaking at the ANZ Finance & Treasury Forum in Singapore, Bremmer said: "This geopolitical recession is something really simple — it's the end of the U.S.-led global order. And we don't know what is replacing it yet."
Bremmer, who is the president and founder of political risk consultancy Eurasia Group, suggested a new economic downturn would lead to greater fragmentation across the globe.
He said: "I'm much more concerned that when the next economic recession hits … And certainly there's not as much free money, and when the corporates are tightening their belts, then we'll get into trouble. In other words, the political implications of the next economic down-cycle will be much greater dislocation."
He believes a major reason for the current political disruption is that the "geopolitical order is no longer as aligned with the United States and its allies."
He added that the relationships between Americans and Europeans had deteriorated with the latter becoming weaker on the global stage. He also pointed to the rise of China and said that, overall, emerging markets are becoming more important.
"The Americans are less interested in exporting democracy ... Today there is an argument to be made that the Americans are exporting populism," he said, pointing to the new anti-establishment government in Italy. Coming to power in early June, Italy currently has a ruling coalition that is made up of the right-wing Lega party and the left-leaning Five Star Movement.