The trend toward de-globalisation sparked by the pandemic has been accelerated by the Russia-Ukraine conflict, according to top Wall Street analysts.
Countries were already increasingly considering on-shoring supply chains after they were burnt by the Covid-19 crisis disrupting trade flows, according to Goldman Sachs.
“No matter where the current crisis goes from here, the damage to globalization is already occurring,”
Economies face a trade off between strengthening security of supply by expanding domestic production of goods and services in exchange for stoking inflation pressures as a result of manufacturing products they are comparatively less efficient at producing.
Inflation is already rippling throughout developed countries, sparking concern among experts that the recovery from the pandemic will be more sluggish than first thought.