Global Trade Volumes Reflect the Pause in Globalization

"Moreover, in the years since the global financial crisis, international trade has been a less powerful engine of economic growth."

Nathan Sheets, PhD Chief Economist, Head of Global Macroeconomic Research

PGIM Fixed Income, Globalization 2.0—A New Synthesis, Haver Analytics, May 2020

"Moreover, in the years since the global financial crisis, international trade has been a less powerful engine of economic growth. As shown in the figure, from 1991- 2007, global trade volumes expanded by 6.9% a year on average, but slowed to growth of just 1.8% a year following the crisis. Since 2018, when President Trump kicked off his trade war in earnest, global trade volumes have flattened further."

Figure 1: Global Trade Volumes Reflect the Pause in Globalization

Global Trade

Source: PGIM Fixed Income, Haver Analytics