Deglobalisation, is it in the room with us?
While decoupling in specific industries is a concern for global trade, deglobalisation at a larger scale presents a small but rising risk. Target measures against the trade of information and technology may continue to increase, given rising geopolitical tension, but there are few signs of this spilling over into the broader trade environment.
What you will learn:
- Reshoring represents a costly enterprise in the short term due to the cost of implementation and current economies of scale available in global markets.
- There has been a spike in tariff measures and other restrictions in the years since 2018, and an average of 68% of new trade-restrictive interventions implemented since 2009 remain active.
- We have seen a slowdown in world trade growth relative to global GDP growth in recent years. Increasing interventions is a concern as the most intervention targeted sectors cover 55% of global trade in real dollar values in 2022