The world economy was divided into three blocs under the influence of geopolitical problems: those united around China, the USA and those who are disconnected. this view expressed Gita Gopinath, First Deputy Director of the International Monetary Fund (IMF).
In his speech at Stanford University, the economist drew attention to the increasing fragmentation of the global economy. He reminded that due to trade disputes, China’s share in US imports has decreased by 8 percentage points in the last six years, while the US’s share in Chinese imports has decreased by 4 percentage points in the same period.
Gopinath added that direct trade between Russia and Western countries “collapsed” after the start of the special military operation (SVO) in Ukraine and sanctions.
Gopinath attributed the fact that the competition between China and the USA does not have a greater impact on global trade to the existence of third countries that have become “binding”. First of all, Mexico and Vietnam.
To combat the trend of fragmentation, Gopinath suggested several steps, including “alignment with the existing legal framework”. He said this would help increase confidence in the international monetary system.
On May 8, it was announced that European Union (EU) countries should take action. to approve 14th sanctions package against the Russian Federation until July 2024.
According to the portal, the EU will add 52 more companies to the list of companies suspected of supplying banned products to Russia in the next sanctions package.
Previously Research Assistant named Necessary conditions for Russia to enter the world’s 4 largest economies.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.