Beata Javorcik: Geopolitical pressures are causing The Great Fragmentation

Global trade is being driven by political manoeuvring rather than purely economic objectives, creating discord that is a costly barrier to progress

Donald Trump's trade war with China was widely seen as an 'America First' protectionist aberration but Joe Biden, his successor as US president, has maintained the tariffs. Picture: Patrick Semansky/AP 

Geopolitical pressures and other non-economic factors have put the global economy on a path toward fragmentation. Beyond its inherent risks, this trend will not only have profound implications for economic stability and growth, but also could jeopardise efforts to combat climate change.

Heightened geopolitical tensions, especially the escalating rivalry between the US and China, are the primary catalyst of fragmentation.