International Monetary Fund (IMF) along with traditional economic and financial risks (tightening monetary policy, slowing down economic growth in China, increasing energy prices, etc.) attributed to negative factors in the development of the world economy the risk of its division by its division Geopolitical blocks that arose as a result of the war of the Russian Federation with Ukraine.
“A serious risk in the medium term is that the military operations in Ukraine will contribute to the fragmentation of the global economy on geopolitical blocks with clearly distinguishable technological standards, cross -border payment systems, reserve currencies,” the fund report, Russian media reports.
At the same time, the IMF does not see the essential signs of “remering” (the return of production to their homeland from countries with lower costs) or trade deglobalization. According to the analysts of the Fund, today world trade is more stable than expected at the beginning of the Covid-19 pandemic. Nevertheless, if the tendency to geopolitical fragmentation intensifies, this can reduce the effectiveness of multilateral cooperation, including in the field of combating climate change. In the future, such disunity can also lead to the fact that “the current food crisis will become the norm,” warns the IMF.