Different regions’ growth will diverge if the global economy is becoming "regionalised"
The replacement of global value chains with regional value chains is leading to a "regionalisation" of the global economy. I n particular , there will probably be three large regions: The Americas; Europe; Asia. In a regionalised economy, investments are made in each region because of the region’s growth prospects, and no longer to export to other regions. This perpetuates the weak growth in regions where potential growth is low, and boosts growth in regions where potential growth is high, and the growth gaps between regions will be reinforced , which will be positive for Asia and negative for Europe and the Americas.