Global economy: realignment, challenges and opportunities
Global economy – In recent decades, globalisation has profoundly changed the world economy. Companies have set up production facilities all over the world. Supply chains extend across several continents. Consumers enjoy access to a wide range of products from all over the world.
Can this continue?
Recently, globalisation has faced new challenges that require a reorientation of the global economy.
Global economy in transition – what are the most important aspects of this transformation?
Let’s take a closer look at de-globalisation, supply bottlenecks and the close link between the political and economic situation.
De-globalisation: a return to national markets?
De-globalisation describes the process by which countries and companies begin to withdraw from global networking and instead focus on national or regional markets. This movement is driven by several factors:
- Political instability and protectionism: In many countries, the rise of nationalist movements has led to an increased focus on their own interests. Trade wars and protectionism are on the rise, making international trade more difficult.
- Technological developments: Automation and digitalisation are enabling companies to carry out production processes closer to the domestic market. This reduces dependence on international supply chains.
- Pandemic effects: The COVID-19 pandemic has exposed the vulnerability of global supply chains. Companies and governments are recognising the need to relocate critical production capacities domestically or to safe partner countries.
Supply bottlenecks: challenges for production
Supply bottlenecks are a key problem in the current global economy. These can be attributed to various causes:
- Disruptions in the supply chain: Natural disasters, geopolitical tensions and pandemic-related lockdowns have significantly disrupted supply chains. Production stoppages in one country can have a global impact.
- Increases in demand: As the global economy recovered after the pandemic, demand for many goods increased rapidly. Production capacities could not be ramped up quickly enough to meet this demand.
- Transport problems: Bottlenecks in shipping, a lack of containers and congested harbours have further delayed the delivery of goods. The lack of lorry drivers in some regions is also contributing to the problems.
Political and economic interdependencies
The global economy is closely linked to the political situation. These interactions can have both a stabilising and a destabilising effect:
- Geopolitical tensions: Conflicts such as the trade war between the US and China or the war in Ukraine have a profound economic impact. Sanctions, trade restrictions and uncertainty in relation to political decisions affect international trade.
- Regulatory changes: New laws and regulations can quickly have a significant impact on the economy. For example, stricter environmental regulations lead to changes in production and logistics.
- Global cooperation: Despite the trend towards de-globalisation, international cooperation remains essential. Climate change, pandemics and security issues require global solutions that transcend national borders.
Opportunities and outlook
Despite the challenges, the reorganisation of the global economy also offers opportunities:
- Resilience and sustainability: The diversification of supply chains and the relocation of production capacities can increase the resilience of the economy and reduce dependencies.
- Innovation and digitalisation: New technologies and business models, such as additive manufacturing (3D printing) and Industry 4.0, enable more efficient and flexible production processes.
- Sustainability: A regional focus can help to reduce the carbon footprint by shortening transport routes and utilising local resources more efficiently.
The global economy is changing.
The challenges of de-globalisation, supply bottlenecks and geopolitical tensions require new strategies and adjustments. Companies and governments are called upon to find innovative solutions to overcome these challenges and at the same time utilise the opportunities arising from the realignment of the global economy.
The future lies in striking a balance between globalisation and local adaptation to create a sustainable and resilient economy.
Public speaker and experts on globalisation and the world economy:
Monika Schnitzer – Economist & Economist, Chairwoman of the German Council of Economic Experts: “Despite inflation, energy transition & geopolitical conflicts – we must invest in the future in difficult times.”
David Bosshart – President of the G. & A. Duttweiler Foundation, business thought leader, trend analyst talks about megatrends and counter-trends in business and society, the future of consumption and trade, contradictions of globalisation and political philosophy.
Marcel Fratzscher – Economist and expert in finance & economy: “I am in favour of stronger European institutions that enable all countries to live up to their own responsibilities again.”
Arturo Bris – Professor of Finance at IMD Lausanne, Director of the World Competitiveness Centre speaks about the challenges in the global economy and how resource efficiency increases the competitiveness of companies.
Beatrice Weder di Mauro – Economic expert and one of the five most recognised economists in the world. In her lectures, she reports on the global economy in turbulent times, inflation and war, economic and growth forecasts, populism, protectionism and unilateralism.
Joschka Fischer & Sigmar Gabriel – both very familiar with foreign policy and the political and geopolitical shifts.
Would you like to find out more or book one of our experts on the topic of “Global Economy in Transition” for a presentation? Contact us: 1 (704) 804 1054 or welcome@premium-speakers.com