Globalization has been breaking down for a while – here's what could end it
"The worst is yet to come, and for many people, 2023 will feel like a recession."
Pierre Olivier Gourinchas' warning from the IMF's World Economic Outlook in October 2022 underlined the significant slowdown in the global economy – and the reliance on global trade to function.
It raised questions about whether the many benefits of globalization outweigh the geopolitical problems it has helped create.
The latest wave of globalization has seen great resistance. As a result of technological advances, whole industries have been wiped out, causing mass job losses. Worker exploitation and a rise in inequality have also been at least partly attributed to globalization.
"You know how stock markets have bubbles? And then there's a correction," said Kevin Gallagher, economist and director of the Global Development Policy Center at Boston University. "I think there's been a globalization bubble, and we're trying to correct it."
Watch the video above to learn more about why economists think globalization is fragmenting – and what lies ahead.