## Picture This: Globalization’s Peak

## Source details

**Canonical URL:** [Picture This: Globalization’s Peak](https://www.imf.org/en/publications/fandd/issues/2023/06/pt-globalization-peak-stanley)

## Other formats

- [Markdown version](/en/publications/fandd/issues/2023/06/pt-globalization-peak-stanley/index.md)
- [Structured JSON version](/en/publications/fandd/issues/2023/06/pt-globalization-peak-stanley/index.json)
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## Bibliographic details
- Authors: ANDREW STANLEY
- Published: June 1, 2023

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### Overview
- The free flow of goods, services, capital, people, and ideas across national borders fosters greater economic integration; globalization refers to the trend toward these flows moving more freely between countries.
- Recent evidence suggests globalization has reached a momentary peak, with trade openness plateauing globally since 2008 and receding for some of the world’s largest economies.
- Concurrently, there has been a significant surge in trade restrictions globally over the past few years.

### Key findings
- Trade openness metric has plateaued on a global level since 2008.
- The trade openness metric has receded for some of the world’s largest economies.
- There has been a significant surge in trade restrictions globally over the past few years.
- The history of globalization is characterized by five main periods with different configurations of economic and financial power and different rules and mechanisms for economic and financial ties between countries.
- Policymakers are increasingly focused on the prospect of growing geoeconomic fragmentation.

### Metrics and evidence
- Trade openness metric defined as: the sum of exports and imports of all economies relative to global GDP.
- Long-run data covering a century and a half show clear main phases of globalization.
- Trade restrictions imposed in 2022: (not quantified on this page; text indicates a notable increase in recent years).

### Recent shocks and drivers of change
- Rise in trade tensions between the world’s two largest economies, the United States and China.
- Russia’s invasion of Ukraine has caused massive disruptions of financial, food, and energy flows across the globe.
- COVID-19 increased focus on economic security and on making supply chains more resilient after the pandemic exposed their vulnerability in many countries.

### Implications and policy focus
- The observed plateau in trade openness and surge in trade restrictions suggest a new era for globalization with greater fragmentation risks.
- Policymakers are working to understand and address the prospect of growing geoeconomic fragmentation, with increased emphasis on economic security and supply-chain resilience.

*F&D Magazine — Globalization’s Peak; ANDREW STANLEY; June 2023.*

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## Content in this bundle

- **Globalization’S Peak**
  - [Globalization’S Peak (Markdown version)](/-/media/files/publications/fandd/article/2023/june/picture-this-june23.pdf.md){rel="alternate" type="text/markdown"}
  - [Globalization’S Peak (PDF)](/-/media/files/publications/fandd/article/2023/june/picture-this-june23.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/fandd/issues/2023/06/pt-globalization-peak-stanley_