IMF Head: world may split into two hostile camps in near future
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, noted that our world may split into two hostile camps in the near future, and this will have a very strong impact on the economy of each country, TASS reports
Speaking at the recent Brussels Economic Forum, Ms. Georgieva noted, “The risk that the world will split into two hostile camps is growing, and it will be dangerous for everyone, including the European Union. The world trade fragmentation will lead to the loss of 7 percent of GDP, which is equivalent to the GDP of Germany and Japan. If we take into account the fragmentation of scientific research, the losses may amount to 12 percent.”
The IMF Head added that, due to the Ukrainian conflict and the coronavirus pandemic, a global tendency is now observed to prioritise the development of trade and investment between countries that are considered friendly for political reasons.
According to Mr. Georgieva, the period of global integration is coming to an end, and this process is accompanied by an increase in inflation and a slowdown in economic growth.
