Research Briefing | Oct 11, 2023

Industrial sector opportunities amidst ‘slowbalisation’

The global economy has been in a ‘slowbalisation’ in recent years. This is set to continue as advanced economies (AEs) retreat from freer trade in favour of prioritising national industry, trade, and security. For real estate investors in AEs, this policy shift could present compelling long-term opportunities in the industrial sector.

What you will learn:

  • Although there has been a levelling off in the share of world trade in GDP and in some measures of financial globalisation, we are a long way from a genuine deglobalisation. But the high-water mark of globalisation has likely passed.
  • Combined with efforts by Western governments to promote domestic manufacturing, this should create a structural tailwind that raises demand for production and distribution space in markets that are closer to the end consumer or where there is geopolitical alignment with the West.
  • These opportunities will be local and industry-specific depending on corporate investment plans and fiscal support packages. Meanwhile, a general shift towards domestically focused industrial and trade policies should provide opportunities for investors in industrial real estate as global supply chains reconfigure.
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