Globalisation Beyond the Pandemic: Opportunities from a Great Reset

Delivery

This report comes in PPT.

Key Findings

Global trade, investment and migration are slowing down, but digital connectivity is surging

International trade and foreign direct investment growth have slowed down since the 2010s, on the back of shifting global demand, rising labour costs, technological advances and other factors such as protectionism policy and changing consumer value. Global travel and migration have also been severely disrupted since the COVID-19 pandemic. Digital connectivity, meanwhile, becomes an important driver of global economic integration.

Diversification, digitalisation and sustainability are evolving trends resetting globalisation

The global economy is entering a new phase of globalisation, as business efforts to reshuffle supply chains, digitalise and enhance sustainability are reshaping the global manufacturing, trade and investment landscape. The future globalisation will become more people-centred and less geographically-concentrated, as more countries would join the global value chains. Nevertheless, geopolitical risks and protectionism continue to pose a threat to global trade and investment.

The new phase of globalisation will create new winners (and losers), thus new business opportunities (and challenges)

Economies with large internal markets, e-commerce, education services, high-tech companies and local brands are likely the winners of the new globalisation.  Meanwhile, small and open economies may come under stress. Consumers may face higher product prices due to manufacturers’ production relocation. The income gap between consumers in advanced and developing countries may also rise, creating a more fragmented global consumer market.

Building resilience is a top priority for business

In order to mitigate risks and better secure access to supplies and markets in the new global era, companies will need to accelerate digital transformation, focus on people and the planet and diversify both their end-markets and the supply of raw materials, labour and manufacturing across the value chains.