World faces economic fragmentation, paper warns

Bank of Finland economist warns of potential rise of competing trade blocs

Bank of Finland
Bank of Finland
Photo: Skorpion87/Wikimedia Commons

Geopolitical risks could lead to increased fragmentation of the global economy, a Bank of Finland study finds.

In her paper, senior economist Anni Norring outlines how developments such as US-China tensions, Russia’s invasion of Ukraine, and divergences between developed nations and the “global south” have strained the interconnectedness of the world’s economies. 

She warns that although “geoeconomic fragmentation” has thus far been limited, the signs are that it will become more pronounced over

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