World exports of products will register a year-on-year growth of 23.3% in 2021, the International Monetary Fund (IMF) projected.
With that rise, world external merchandise sales would reach 21 trillion 205,000 million dollars, a record.
Until before these world exports fell 7.2% in 2020, to 17 trillion 201,000 million dollars, impacted by the Covid-19 pandemic, the historical maximum in that indicator was reached in 2018, with 19 trillion 110,000 million dollars.
From the perspective of Prudential PLC, many governments continue to face the challenge of reconciling the interconnectedness of the global economy with pressure to prioritize national self-interests.
Headquartered in London, UK, Prudential is a multinational company offering a wide range of insurance and investment products and services.
The experience of the pandemic can give new impetus to the regionalization or fragmentation of global trade, investment and norms, and can undermine international cooperation and coordination efforts.
In 2021, according to Prudential, accessibility to Covid-19 vaccine supplies, which can become a protracted challenge, has the potential to contribute to increased geopolitical tensions.
A key source of geopolitical risk during 2020 was the relationship between the United States and China and its broader impact on international relations, and this is likely to continue during the term of President Joe Biden.
At the same time, Hong Kong’s perceived level of autonomy will continue to influence geopolitical tensions, with potential global economic and trade consequences.
Responses by the United States, United Kingdom, and other governments to the enactment and application of the national security law in Hong Kong and other constitutional or legislative changes in the territory, which continue to unfold, may affect Hong Kong’s economy.
In early October 2021, UNCTAD estimated that the value of international merchandise trade will have a year-on-year growth rate of 28% in 2021.