recent report published By the International Monetary Fund (IMF) warns that the global economy could be divided into geopolitical blocks due to the conflict in Ukraine and sanctions against Russia.
“The grave danger to the medium-term outlook is that the war in Ukraine contributes to this Fragmentation of the global economy into geopolitical blocks With different technological standards, cross-border payment systems and currencies in reserves”, expect July World Economic Outlook.
According to the IMF, such a division would prevent the international community from jointly addressing global problems such as climate change “with the added risk of the current food crisis becoming the norm”. Moreover, it can hinder global trade and cooperation.
The tightening of anti-Russian sanctions could lead to a complete interruption of Russian gas supplies to Europe by the end of 2022, which in turn would lead to “high inflation expectations” and tighten financial conditions as governments try to adjust to higher prices. .
In addition, tighter global financial conditions could increase debt distress in emerging and developing economies, the study says. (RT News)
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