Have you ever wondered how much world leaders earn? They are in charge of countries with GDPs (gross domestic products) worth billions of dollars, and the decisions they make and the policies they set affect the world’s trading markets. But have you ever considered exactly what they do to earn these paychecks? Below, you’ll discover who the most highly-paid world leaders are and how what they do (and what they believe in) has an effect on the world’s financials.
Who Are the Highest Paid World Leaders?
Some of the highest-paid world leaders include the President of the United States, Donald Trump; the Chancellor of Germany, Angela Merkel; and the Prime Minister of Canada, Justin Trudeau. According to a report on the paychecks of world leaders, President Trump makes £311,450 a year, which makes him the third-highest paid leader in the world. In fourth, Chancellor Merkel rakes in £287,878, and in eighth is Prime Minister Trudeau, who makes £207,925 a year.
Also featured on the list is Jacinda Ardern, the Prime Minister of New Zealand, who earns £264,625 for leading her country. Sebastian Kurz, the Chancellor of Austria, earns a little less than Arden, at an annual salary of £255, 844, while Xavier Bettel, the Prime Minister of Luxembourg, makes £216, 485 a year for his work in leading one of the smallest countries in the world.
How Can You Take Advantage of Global Economic Policies
Aside from taking “recession-proof” jobs, there’s little you can do to insulate yourself from an economic downturn. The value of a country’s currency is demonstrated with forex, which is the decentralized market for buying, selling, and exchanging foreign currencies. A weak economy or currency is reflected in a low price for that currency as fewer people want to buy it as a result of lower demand. Forex trading is one of the areas most heavily affected by the policies of world leaders, meaning policies that are deemed detrimental to a nation’s economic health will see the associated currency devalue.
Another strategy is to invest in stocks. By making predictions on how upcoming economic policies will affect certain industries of a nation, you could potentially benefit by investing in those industries before the policies are announced. You’ll need to be tuned into politics to do this successfully, but it’s worth considering.
How Do They Affect Forex and Trading?
Most everything that a world leader does can have an effect on their country’s economy, and that includes even posts on social media. Currency traders are advised to follow Trump’s tweets because, according to financial analysts, when his tweets do have an effect, the ramifications can be witnessed on global exchanges for more than four hours. President Trump’s frosty exchanges with China, including a tweet in which he referred to himself as a tariff man, also led to turmoil in the market, only adding to the uncertainty that the market was already experiencing.
Meanwhile, across the pond, Britain’s vote to leave the EU (known as Brexit) in a referendum, which itself was supported by then-Prime Minister David Cameron, has resulted in turmoil for the Great British Pound. The pound is now weaker, and the uncertainty has affected investments as well. Although, this uncertainty isn’t just limited to Britain and the pound, as the euro also saw fluctuations following Angela Merkel’s announcement to not seek re-election at the end of her term as Chancellor of Germany, so it’ll be interesting to see what will happen to the euro when Merkel actually step down.
For traders, the stability of the market will affect how they buy or sell commodities, the cost of production of their goods on a large scale, and how they operate or invest in certain regions. However, the average person can also benefit by choosing to open a forex trading account. Currency trading may not be risk-free, but it provides a chance to profit off of the economic decisions (or late-night social media posts) of world leaders.
While events such as Brexit are large-scale and do not happen very often, late night tweet sessions from the US president are extremely common. This just highlights how volatile the market can sometimes be and how much of an effect world leaders and their actions have on it.