Geopolitical tension could lead to 2% loss in world GDP

Current geopolitical tensions, such as the rivalry between China and the United States or the conflict in Ukraine, are changing the flow of foreign investment and could cause losses equivalent to 2% of world GDP, the IMF said on Wednesday.

The International Monetary Fund (IMF) published yesterday a chapter of its report on the economic outlook and another of the report on global financial stability in which it analyzes the consequences of the geopolitical fragmentation that has taken place in recent years and warns of the growing protectionism of many countries.

Next week, on the occasion of the spring meetings of the IMF and the World Bank, the full reports will be published, updating the outlook for global growth.

According to the IMF, quoted by Observador, concerns about global economic and financial fragmentation have intensified in recent years amid growing geopolitical tensions between China and the United States and also with Russia's invasion of Ukraine.

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