The Economic Consequences of Populism – Result of a Special Question in the Ifo World Economic Survey

Populism is encountered in very diverse forms throughout the world. To shed light on its impact on the global economy, participants in the April Ifo World Economic Survey were asked about the economic consequences of populism in their country. The results show that populism is present in many regions of the world but that the economic consequences vary. In many places, the impact of populism on economic policy has weakened, but in other regions, especially in Europe, the WES participants registered an increase in populism over the last five years, although the economic effects have been moderate so far. Based on the assessments of the WES experts, populism generally increases short-term government spending and leads to redistribution policies.