Trade divide to cost world $1.4tr: IMF chief

The rise of trade barriers against China and other countries over the past year could cost the global economy $1.4 trillion, on top of the severe damage being done by the war in Ukraine, the head of the International Monetary Fund said.

“What I am hoping to see is some reversals in policy blocks towards China and globally,” Kristalina Georgieva told Bloomberg Television’s Stephen Engle in an interview in Bangkok yesterday. “The world is going to lose 1.5 per cent of gross domestic product just because of division that may split us into two trading blocs. This is $1.4 trillion.” For Asia, the potential loss could be twice as bad, or more than 3% of GDP, because the region is more integrated into the global value chain, Georgieva said on the sidelines of the Asia-Pacific Economic Cooperation’s economic leaders gathering this week.