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

Biden calls Truss’ economic plan a mistake

Latest from -Top News

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with

India-EU Trade Deal Breakthrough Soon?

Negotiators report increased momentum in discussions, which have been given a boost from US President Donald Trump’s tariff offensive…reports Asian Lite News India and the European Union aim to finalise a trade

Europe Seeks Peace in Gaza

European countries condemn Israeli interception of Gaza-bound flotilla, demand safety of citizens…reports Asian Lite News Israel’s interception of an international flotilla carrying humanitarian aid to Gaza has sparked condemnation across Europe, with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and

‘My Injuries Made Me’

During his four-year battle with injury, the incumbent fast bowling spearhead made occasional appearances but couldn’t bear the workload and demands of red-ball cricket….reports Asian Lite News England tearaway Jofra Archer believes
Go toTop

Don't Miss

Lebanon and IMF to resume talks for int’l support

Lebanon remains fully committed to engaging in a constructive, transparent

Sharif pins hopes on China amid potential default

The Pakistan Prime Minister said an agreement is not being