In a new report from his staff released Sunday, the International Monetary Fund (IMF) claims that severe global economic fragmentation could cost global Gross Domestic Product up to 7.0%, but losses could reach 8-12% in some countries if technology is also decoupled.
conclusions
“Even limited fragmentation could subtract 0.2% from global GDP, but more work is needed to assess the estimated costs to the international monetary system and the global financial safety net (GFSN).”
“The COVID-19 pandemic and the Russian invasion of Ukraine have further strained international relations and increased skepticism about the benefits of globalization.”
“The breaking trade links would hit low-income countries and less affluent consumers in advanced economies more negatively.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
