Stalled Globalization: Has International Trade Peaked?

By Jieying Ding

International trade has not been growing any faster than global GDP in the past few years, growing by only 2.8% in 2012 and 3.2% in 2013 in, even though global GDP grew by 3.1% and 3.2%, according to the Economist.  Some analysts think that the absence of further trade deals or lack of big countries opening up their makers has caused global trade growth to slow down. Others think that the decline is due to post-crash protectionism as there has been a significant rise in new measures impeding global trade since the crash. It’s worth mentioning that Paul Krugman, a Nobel Prize winner, maintains that “we should neither be amazed nor disturbed” if international trade has indeed peaked.