Digital globalisation: The new era of global flows

?Conventional wisdom says that globalisation has stalled. But although the global goods trade has flattened and cross-border capital flows have declined sharply since 2008, globalisation is not heading into reverse. Rather, it is entering a new phase defined by soaring flows of data and information.

Remarkably, digital flows, which were practically non-existent just 15 years ago, now exert a larger impact on GDP growth than the centuries-old trade in goods, according to a new McKinsey Global Institute (MGI) report:

Digital globalisation: The new era of global flows.

And although this shift makes it possible for companies to reach international markets with less capital-intensive business models, it poses new risks and policy challenges as well.

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