Economic Buzz: WEF highlights impact of rising fragmentation in global economy on GDP trends

World Economic Forum or WEF has stated in a latest update that as countries increasingly prioritize national interests and security concerns (e.g., through efforts to bolster supply chain resilience), the seamless flow of capital, investment, commerce and financial services has been disrupted, resulting in a more disjointed and less conducive environment for growth. These disturbances have increased inflation and reduced economic expansion by introducing friction in economic interactions. The WEF has stated that in a worst-case scenario, fragmentation in the system could reduce global GDP by $5.7 trillion and increase global inflation by more than 5%, according to the World Economic Forum?s Navigating Global Financial System Fragmentation report, produced in collaboration with Oliver Wyman.

Powered by Commodity Insights