For those who believe that the era of globalization is over, think again. In economic terms at least, we are seeing a re-globalization of sorts, with cross-border flows of goods and capital on the up.
The COVID-19 pandemic certainly led to some setbacks. In fact, cross-border trade declined more during March and April 2020 than it did during the Great Depression of 1929. However, the recovery has been faster than expected.
This is particularly the case with trade and capital movements between developed economies. China is included in this latter category.
As far as human travel is concerned – whether for business or pleasure – the recovery is slower. According to the DHL’s Global Connectedness Index 2020, travel has suffered an unprecedented drop resulting from the restrictions of the pandemic. And the reopening of borders is taking considerable time.
Thus, the re-globalization we are seeing is fragile and…