Issue New free trade zones and rising protectionism at the same time

Summary

The Megatrends 2040 report observes that two contradictory developments have emerged in the global economy. On one hand, new free trade zones are being created around the world. On the other, there is a strong tendency toward greater protectionism. The report places this tension within a new phase of globalisation driven by technology, which has created opportunities but also unexpected instability, and observes that the COVID-19 pandemic exposed the vulnerability of a highly globalised world. Such upheaval could lead to a reshaping of global interconnection, including reviews of strategic sectors and new forms of geopolitical cooperation.