“The world can be divided into two hostile camps, which is dangerous for everyone.” The head of the IMF assessed the economic risks – 2024-05-14 12:57:41

The world may soon be divided into two hostile camps, which is dangerous for everyone, including the European Union, Kristalina Georgieva, Executive Director of the International Monetary Fund, said in her speech at the Expert Economic Forum in Brussels.

“The danger that the world will be divided into two hostile camps is increasing, and it is dangerous for everyone, including the European Union. The fragmentation of world trade will cost the world a 7 percent loss of GDP, which is equivalent to the GDP of Germany and Japan, and if we consider scientific research, then the losses can be 12 percent,” he said.

According to the IMF Executive Director, the period of global integration is coming to an end, this process is accompanied by an increase in inflation and a slowdown in economic growth. In 2023, global economic growth was less than 3 percent, while the IMF considers 4 percent as a normal growth threshold.

At the same time, the director of the IMF expressed confidence that the EU countries will be able to overcome the crisis.

“They were able to give up Russian gas, noticeably accelerated the transition to renewable energy, achieved a decrease in inflation from a record 9.2 percent in 2022 to 6.3 percent predicted for 2023,” said Georgieva.