According to Deutsche Bank’ s chief forex strategist George Saravelos a new megatrend is emerging – deglobalisation. Eight years after the fall of Lehman Brother everything indicates that the phenomenon of globalisation has had its day.
Cross-border trading and finance are shrinking, anti-globalisation sentiment is growing in politics, free-trade agreements are under threat and changes in regulation worldwide are becoming more protectionist.
Here are four charts to support the view that globalisation is waning.
The US presidential election is dominated by anti-trade and immigration concerns that are unlikely to shift, whatever the outcome. The political discourse is shifting in many other countries too.
Banking regulation is increasingly balkanized, forcing greater national reporting and capital standards and raising the cost of crossborder business. Fines on multinationals have reached record levels this year.
