Daily Management Review

IMF expects fragmentation of world economy into smaller blocs


In light of the coronavirus pandemic and the situation in Ukraine, Kristalina Georgieva, the president of the International Monetary Fund, said there was a "risk" of greater fragmentation of the global economy into geopolitical blocs.

World Bank Group via flickr
World Bank Group via flickr
"Our ability to resolve the twin crises of pandemic and war is further complicated by another growing risk - the fragmentation of the world economy into geopolitical blocs with different trade, different technological standards, different payment systems, and reserve currencies," Georgieva said in a statement streamed on the organization's website.

She called it "one of the most significant problems" the global economic system has ever faced.

"It already makes it difficult for us to work together on the two crises we face," the IMF chief continued, "and it could leave us utterly unable to respond to other global concerns, such as the threat of climate change."

source: imf.org