Due to rising US-China tensions, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warns of a 7% drop in global GDP. (Photo: CNN)
IMF Managing Director Kristalina Georgieva Raises Alarm Over Potential Trade War Fallout
Due to rising US-China tensions, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warns of a 7% drop in global GDP. Georgieva warned nations about economic fragmentation and the effects of the U.S.-China trade conflict and higher trade prices.
Georgieva told CNN International’s Christiane Amanpour that the COVID-19 pandemic and Ukraine crisis would have major effects on global supply chains. She warned that supply networks might grow, raising consumer prices. Georgieva noted the rising blocs of countries, emphasizing U.S.-China economic rivalry.
Georgieva’s simulations showed dangerous outcomes, highlighting worst-case scenarios’ influence on the global economy. She cautioned against countries fragmenting the world economy for national security, citing rising costs. Georgieva warned of a 7% drop in global GDP, akin to France and Germany disappearing from the world map.
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The IMF chief’s warning comes amid mounting concerns over global free trade, led by American and European officials worried about China’s economic and national security vulnerabilities. Chinese Foreign Ministry spokesman Wang Wenbin opposed the shift away from global free trade and stressed China’s commitment to free trade accords.
Georgieva’s warning urges global leaders to find cooperative and sustainable ways to reduce economic tensions between the world’s two largest economies. A 7% drop in global GDP highlights the urgency of the crisis and the necessity for collaboration to maintain global economic stability and prosperity.
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