IMF says fragmentation could cost global economy up to 7% of GDP

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IMF says fragmentation could cost global economy up to 7% of GDP
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Losses could reach 8-12% in some countries, if technology is also decoupled. Read more at straitstimes.com.

WASHINGTON - A severe fragmentation of the global economy after decades of increasing economic integration could reduce global economic output by up to 7 per cent, but the losses could reach 8-12 per cent in some countries, if technology is also decoupled, the International Monetary Fund said in a new staff report.

“The Covid-19 pandemic and Russia’s invasion of Ukraine have further tested international relations and increased scepticism about the benefits of globalisation,” the staff report said. Restrictions on cross-border migration would deprive host economies of valuable skills while reducing remittances in migrant-sending economies.

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