October 16, 2022
1 min read

IMF chief warns of risk of geopolitical fragmentation

Nadia Calvino, Spain’s first vice president and minister for economy and digitalization, who is the chair of the IMFC, also highlighted the risk of fragmentation…reports Asian Lite News

There is a risk of geopolitical fragmentation, as geopolitics turn into geo-economics with negative impacts, warns International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

“Emerging markets and developing countries have stressed that for them, it is paramount that they have the opportunity to drive growth and employment on the basis of a more integrated global economy,” Georgieva said at a press conference during the IMF and World Bank annual meetings in response to a question.

That was also a message coming from small advanced economies, Georgieva noted, referring to the meeting of the International Monetary and Financial Committee (IMFC), the policy advisory committee of the IMF Board of Governors.

“The predominant mood in the room was we cannot possibly allow fragmentation to happen because everybody would be poorer, but it would be devastating for low-income and, for emerging markets and developing economies,” said the IMF chief.

Georgieva said that a simulation showed that for advanced economies, global economic fragmentation would mean a loss of 2 per cent of output, while for emerging markets and developing economies, it could be 10 to 15 per cent.

Nadia Calvino, Spain’s first vice president and minister for economy and digitalization, who is the chair of the IMFC, also highlighted the risk of fragmentation.

In the Chair’s Statement of the 46th Meeting of the IMFC, Calvino said the global economy is subject to increased fragmentation risks and the IMFC reiterates its call for greater international cooperation to prevent fragmentation and safeguard global economic integration.

Looking back, Georgieva noted that an integrated economy led to the tripling of the world economy in the last decades, in which emerging markets and developing economies quadrupled, and advanced economies doubled.

“So if we want to have a secure future, we do need to retain that efficiency that comes from an integrated economy,” she added.

ALSO READ: Pakistan to summon US envoy over Biden’s remarks

Previous Story

Anti-NATO Protest erupt in France, Germany

Next Story

New Covid variant BQ.1 behind 1 in 10 cases in US

Latest from -Top News

U.S. Raises Alarm for Americans in Pakistan

Earlier, the US Department of State had issued a travel advisory in March, also urging its citizens to “reconsider travel to Pakistan due to terrorism and the potential for armed conflict.”…reports Asian Lite

Khawaja Asif: Peace Only If India Backs Down

The Indian strikes and Islamabad’s retaliation has jolted locals who fear that it could potentially lead to a full-scale war between the two countries…reports Asian Lite Ndews Pakistan’s Defence Minister Khawaja Asif

India Rising, Pakistan Crumbling

Pakistan is on the verge of economic collapse and is surviving on IMF loans, with its forex reserves down to $15 billion…reports Asian Lite News While Pakistan has threatened to respond forcefully

Israel backs India’s ‘Operation Sindoor’

The military operation struck camps and logistical hubs linked to terror groups held responsible for orchestrating the Pahalgam attack…reports Asian Lite News Israel has voiced strong support for India’s right to defend
Go toTop

Don't Miss

IMF slashes forecast for Italy’s economic growth in 2023

The weaker economic growth model for Italy comes amid the

IMF predicts drop in global inflation  

According to the IMF’s update, global economic growth is projected