Countries G20 should abandon the policy of protectionism and fragmentation of the global economy on geopolitical blocks. World leaders should “allow trade to do their job.” This was stated by the director of the International Monetary Fund (IMF) Kristalina Georgieva at the G20 summit, writes Reuters.
According to her, now 345 million people in the world are suffering from a food crisis because of the war in Ukraine, high inflation and climatic disasters. For this reason, the country G20 should “allow trade to do its job.”
“eliminating barriers, especially for food and fertilizer products, can be of great importance for alleviating the suffering of hundreds of millions of people. We should not allow protectionism to take root, and the world has broken up into separate blocks,” said Kristalina Georgieva.
The head of the IMF has long warned world leaders against fragmentation of the global economy to blocks led by the United States and Western allies in one bloc, and China in another. She is sure that this will lead to various technological and regulatory standards and the strengthening of trade protectionism.
Experts of the International Monetary Fund calculated that the “divided” world will lose at least 1.5% of GDP annually.
“and the price will be much higher – twice as high or more – for countries with an open economy that depend on international cooperation. There is still time to avoid this situation and prevent sleepwinging into a more poor and less safe world,” – emphasized Kristalina Georgieva.