FOREX TradingCharts.com

Financial News: Geoeconomic Fragmentation To Cut Off Upto 7% Of

Geoeconomic Fragmentation To Cut Off Upto 7% Of Global GDP: IMF Staff

01/16/2023 - 08:09:00 (RTTNews)

(RTTNews) - Geoeconomic fragmentation would cost the global economy up to 7 percent of economic output and this could go up to 12 percent in some countries in case of additional technological decoupling, the staff report from the International Monetary Fund showed Monday.

IMF staff cautioned that the world is facing the risk of policy-driven geoeconomic fragmentation after several decades of increasing global economic integration.

Economic costs of fragmentation cover higher import prices, segmented markets, diminished access to technology, and to both skilled and unskilled labor, and ultimately reduced productivity.

Going forward, increased fragmentation in trade would dampen economic opportunities, especially for developing economies and impede global poverty reduction and also lower living standards, the report warned.

Technological decoupling significantly intensifies losses from trade restrictions and emerging market economies as well as low-income countries would be the most at risk from the loss of knowledge spillovers, the IMF said.

Estimates suggested that the cost of global output from trade fragmentations could range from 0.2 percent to up to 7 percent of GDP and this loss could reach 8 to 12 percent in some countries with the addition of technological decoupling, the report said.

Further, geoeconomic fragmentation could strain the international monetary system and the global financial safety net. "Financial globalization could give way to 'financial regionalization' and a fragmented global payment system," the IMF staff said.

Fragmentation could weaken the capacity of the global financial safety net to support crisis countries and also complicate the resolution of future sovereign debt crises due to lack of international cooperation, the report added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2023 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Dutch Producers Slightly More Positive In January (01 hr(s), 17 min(s), 11 sec(s) ago)
(RTTNews) - The Netherlands' producer confidence improved slightly at the start of the year, a ...Full Story»

European Economics Preview: Germany GDP Data Due (01 hr(s), 51 min(s), 11 sec(s) ago)
(RTTNews) - Quarterly national accounts from Germany and economic sentiment survey results from eu ...Full Story»

New Zealand Has NZ$475 Million Trade Deficit (10 min(s), 49 sec(s) ago)
(RTTNews) - New Zealand posted a merchandise trade deficit of NZ$475 million in December, Statisti ...Full Story»

New Zealand Trade Data Due On Monday (07 min(s), 49 sec(s) ago)
(RTTNews) - New Zealand will on Monday release December data for imports, exports and trade balanc ...Full Story»

U.S. Consumer Sentiment Improves Slightly More Than Initially Estimated In January (45 min(s), 49 sec(s) ago)
(RTTNews) - Revised data released by the University of Michigan on Friday showed consumer sentimen ...Full Story»

U.S. Pending Home Sales Unexpectedly Rebound In December (31 min(s), 49 sec(s) ago)
(RTTNews) - After reporting decreases in U.S. pending home sales for six straight months, the Nati ...Full Story»

U.S. Personal Income Inches Up 0.2% In December, In Line With Estimates (09 min(s), 49 sec(s) ago)
(RTTNews) - Personal income in the U.S. increased in line with economist estimates in the month of ...Full Story»

Mexico Trade Surplus Grows To $984 Mln (53 min(s), 49 sec(s) ago)
(RTTNews) - Mexico's foreign trade surplus increased in December from a year ago, as exports g ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Dutch Producers Slightly More Positive In January

01/30/2023 - 01:50 AM (RTTNews)
(RTTNews) - The Netherlands' producer confidence improved slightly at the start of the year, a ...Full Story>>

European Economics Preview: Germany GDP Data Due

01/30/2023 - 01:16 AM (RTTNews)
(RTTNews) - Quarterly national accounts from Germany and economic sentiment survey results from eu ...Full Story>>

New Zealand Has NZ$475 Million Trade Deficit

01/29/2023 - 17:18 PM (RTTNews)
(RTTNews) - New Zealand posted a merchandise trade deficit of NZ$475 million in December, Statisti ...Full Story>>

New Zealand Trade Data Due On Monday

01/29/2023 - 16:15 PM (RTTNews)
(RTTNews) - New Zealand will on Monday release December data for imports, exports and trade balanc ...Full Story>>

U.S. Consumer Sentiment Improves Slightly More Than Initially Estimated In January

01/27/2023 - 10:53 AM (RTTNews)
(RTTNews) - Revised data released by the University of Michigan on Friday showed consumer sentimen ...Full Story>>

Do not sell my personal information

Copyright © 2023. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.