Economic gloom will worsen if Ukraine war causes globalisation to reverse, IMF warns
Global economic misery will deepen if the world divides into distinct geopolitical blocks in light of Russia’s invasion of Ukraine.
On the eve of the World Economic Forum in Davos, IMF chief Kristalina Georgieva said that people in rich and poor countries would suffer if decades of globalisation are reversed.
In a blog, she warned that business leaders were descending on Davos at a time when the global economy was confronting its biggest test since the Second World War.
She said the world was facing a “confluence of calamities” caused by the pandemic, high food and energy prices, tightening financial conditions, disruption to supply chains and the threat of climate change.
“Tensions over trade, technology standards, and security have been growing for many years, undermining growth—and trust in the current global economic system,” she added.
“Uncertainty around trade policies alone reduced global gross domestic product…
