The International Monetary Fund (IMF) stated in a new staff analysis released on Sunday that severe economic fragmentation may reduce global GDP by up to 7.0%, while losses in particular countries might reach 8–12% if technology is also disconnected.
However, further research is required to determine the anticipated losses to the international monetary system and the global financial safety net (GFSN). Even minor fragmentation might reduce the global GDP by 0.2%.
“International relations have been further strained as a result of the COVID-19 outbreak and Russia’s invasion of Ukraine, and there is now more doubt about the advantages of globalization.
the breaking up of trade connections “would mostly have a negative effect on low-income nations and less affluent customers in rich economies.
