Daily Management Review

IMF warns of dangers of splitting the world into conflicting economic blocs


International Monetary Fund (IMF) Managing Director Kristalina Georgieva cautioned that the world economy could fragment into conflicting economic blocs, which poses a growing risk that would be harmful to everyone, including Europe.

World Bank Photo Collection
World Bank Photo Collection
"There is an increasing possibility that the world could break up into competitive economic blocs after decades of global integration. The people of Europe will also be harmed by this situation," Georgieva warned in a statement made outside a Brussels economic event.

A rift is becoming more likely at the same time as the global economy is expanding at a rate that is below "historic standards," the IMF head said, calling the current state of affairs "a dangerous moment in history."

The IMF downgraded its projection for global economic growth in April, dropping it to 2.8% in 2023 and 3.0% in 2024. The international organization also cautioned that the likelihood of the world economy contracting to less than 2% at the end of 2023 is 25%, which is double the average.

source: reuters.com