International Monetary Fund warns of danger of geopolitical division of the world over Ukraine

The International Monetary Fund in a recently published report listed the negative factors in the development of the world economy at the present time.

The list includes, in addition to traditional economic and financial risks (monetary tightening, economic slowdown in China, high energy prices, etc.), the risk of dividing the world into geopolitical blocs as a result of a Russian special operation in Ukraine.

The International Monetary Fund has warned that this will prevent countries from participating in the fight against global problems, including the problem of climate change.

“One of the significant risks in the medium term is that military actions in Ukraine will contribute to the fragmentation of the world economy into geopolitical blocs with clearly identifiable technological parameters, cross-border payment systems and reserve currencies,” the report says.

But for all that, the Fund does not see significant signs at the time of “repatriation” (repatriation of production from countries with low costs) or deglobalization of trade.