Economics and trade

Huge challenges face the 21st century global economy, while global governance and the economic architecture are in flux.

Geopolitical tensions are on the rise following Russia’s invasion of Ukraine and ongoing competition between the West and China, with implications for the global economy. Inflation and an unequal recovery from the COVID-19 pandemic present major headwinds. Finding solutions to international debt distress, tackling climate change and managing the transition to the digital economy are essential issues.

Meanwhile, global governance is under pressure as established economic forums and international organisations face challenges on multiple fronts. But new platforms for bilateral and regional cooperation are emerging. It is far from inevitable that the global economy will become substantially more fragmented over the long-term.