It's A Small World

Our recent reports on the value of Jersey to Britain and Europe highlighted the role that globalisation is playing as a driver for change and how it's impacting cross-border investment flows.

Did you know that over the past 30 years, world output has grown at an average rate of 2.8% a year and cross border trade by 7.9% each year? Trade now accounts for 31% of global GDP compared to under 20% 30 years ago.

So, what does this mean for capital flows?

Globalisation is making capital flow more freely as trade between countries gets larger and people become more mobile. This provides the investments needed to promote higher rates of economic growth and prosperity. Individuals and corporations are more willing and able to make cross-border investments, whether that be economic investment in fixed capital, or financial investment through the purchase of financial assets.