Growing geoeconomic fragmentation can decrease global GDP by $5.7 trn: WEF

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Growing geoeconomic fragmentation can decrease global GDP by $5.7 trn: WEF - Business Standard

Quick Summary:

The Navigating Global Financial System Fragmentation report estimated that fragmentation resulting from statecraft policies could cost the global economy USD 0.6 trillion to USD 5.7 trillion up to 5 per cent of global GDP

due to reduced trade and cross-border capital flows as well as lost economic efficiencies.

Countries are increasingly using the global financial and trading systems to advance geopolitical objectives through sanctions, industrial policies, and other economic measures, the World Economic Forum said while releasing the report here during its Annual Meeting 2025.