The financial system needs preparation for a period of accelerated structural change. Structural change in the real economy is likely to accelerate in response to the current geopolitical situation.
There have been three de-globalisation shocks in a row over the past five years: intensified trade disputes between the US (United States) and China; the coronavirus pandemic, which has exposed vulnerabilities in global value chains; and, more recently, the Russian war against Ukraine as well as lockdown measures in China.