Deglobalization is Major Trend For Year 2023, JP Morgan Strategist Says

The world is becoming more complex, and this process started long before the COVID pandemic and the conflict in Ukraine, analysts believe.

Deglobalization is set to be the main trend for financial markets and the world economy in 2023, according to Jared Gross, a strategist at JPMorgan Chase & Co.

Gross identifies three types of globalization – political, economic and social. According to him, these three types of globalization plateaued 5-7 years ago and then started to decline.

This trend began long before the COVID pandemic and the consequences of the conflict in Ukraine, Gross explained. The turning point was the decision of former US president Donald Trump to introduce tariffs and trade barriers on China in order to alter Beijing's trade policy, which the US deemed unfair. Experts agree that Trump was over-concerned with US-China trade deficit. Beijing, for its part, accused the Trump administration of engaging in nationalist protectionism and took retaliatory measures. By the end of Trump's presidency, the trade war was widely considered a failure in American society. However, current US president Joe Biden kept tariffs in place.

Economists and political scientists point out that deglobalization also implies dewesternization. Russian President Vladimir Putin many times stressed that the West is trying to contain the genesis of a multipolar world by igniting old conflicts. The aim of the Western countries is to preserve their hegemony. According to Russian Foreign Minister Sergey Lavrov, the world is becoming more and more complex with different centers of power.