Asia (bbabo.net), - Economic development specialists at the International Monetary Fund (IMF) have developed a model of a world in which two trading blocs operate in no way dependent on each other.
As the RIA Novosti agency writes in its material, within the framework of this concept it is assumed that in the future two economic formations will be formed on the planet. The first will be led by the United States and the European Union, the second by China and Russia. However, they will not interact with each other.
Analysts say such a world is likely to emerge as trade restrictions in sectors such as commodities and semiconductors have increasingly trumped global economic integration in recent years.
This trend is reinforced, for example, by the fact that the United States and China have introduced a number of bilateral trade barriers in recent years. The globalization process has also been dealt a blow by the coronavirus pandemic, which has triggered national trade restrictions in many countries.
According to IMF experts, the division of the world into two independent economic blocs will lead to reduced access to export markets and soaring prices for many goods. For some reason, the fund’s economists believe that the “eastern” bloc will be the biggest loser from this configuration of the world economy.
The agency cites comments from Russian economists who indicate that the IMF model is very conditional, as are the predicted consequences.
Sergei Tolkachev, deputy head of the department of economic theory at the Financial University under the Government of Russia, expressed his opinion on this matter.
He explained that much in such a two-block economic world will depend on the specific configuration of these blocks - first of all, “on where Africa, Central Asia and Ukraine will join.”
As bbabo.net reported, IMF head Kristalina Georgieva previously warned that the war between Israel and Hamas could lead to long-term economic damage for the entire region.
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