Fragmentation of the World Economy: Analysis and Consequences
Chair: Hélène Rey (London Business School)
Panelists: Kalina Manova (University College London), Isabelle Méjean (SciencesPo) and Catherine Schenk (University of Oxford)
The world is experiencing growing fragmentation in international trade and finance, driven by rising geopolitical tensions, protectionist policies, weaponisation of currencies and strategic decoupling between United States and China with Europe left in a difficult situation. This trend is marked by the reshoring of supply chains, and increasing barriers to cross-border investment and technology transfer as well as a possible collapse of the global financial system. As countries prioritize economic security and political alignment over global integration, the multilateral system and the role of the dollar are being challenged, leading to a far less predictable global economic environment.
