‘Geo-economic fragmentation’ could cut GDP by 12%, says IMF

Georgieva says world faces “new Cold War”, putting global financial stability at risk

Kristalina Georgieva
Kristalina Georgieva
IMF Photo/Allison Shelley

The International Monetary Fund laid out the dangers of “geo-economic fragmentation” on January 15, warning that “the deeper the fragmentation, the deeper the costs”.

“We are facing the spectre of a new Cold War that could see the world fragment into rival economic blocs,” IMF managing director Kristalina Georgieva said in a blogpost.

The IMF estimates global GDP could suffer losses ranging between 0.2% and 7%. The loss could reach 12% in individual countries.

New research by fund staff

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