Blood sucking IMF : World economy at risk of de-globalization
The sanctions on Russia could split the global economy into geopolitical blocs, experts predict
Russia’s military operation in Ukraine and the subsequent Western sanctions on Moscow might push the global economy into geopolitical fragmentation, the IMF warned in a report published on July 26.
“A serious risk to the medium-term outlook is that the war in Ukraine will contribute to fragmentation of the world economy into geopolitical blocs with distinct technology standards, cross-border payment systems, and reserve currencies,” the report states
According to the IMF, such a split would prevent the global community from jointly addressing global problems.
“Fragmentation may also diminish the effectiveness of multilateral cooperation to address climate change, with the further risk that the current food crisis could become the norm,” the authors of the report warn.
The report notes that traditional economic and financial risks have been exacerbated by the conflict in Ukraine and its repercussions. Such risks currently include the effect of tighter monetary policy, slowing economic growth in China and rising energy prices.
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