World economy on brink of ‘cold war two’, IMF official warns
World economy on brink of ‘cold war two’, IMF official warns
Gita Gopinath says global economy’s fragmentation into power blocs risks wipeout of trillions of dollars in GDP
Title is unfortunate, a bit sensationalist. It’s about the decline of the world's GDP due to Geopolitical tensions.
"However, depending on economies’ ability to adjust to the new divisions in world trade, losses could reach as much as 7% of world GDP. The fragmentation of foreign direct investment into two blocs centred around the US and China – with some countries remaining non-aligned – could also result in long-term global losses of about 2% of GDP.
Congratulations to all of the arms manufacturers! 🎉🎊💃🥂
As the group that oversaw murderous neoliberal structural adjustment policies to impoverish whole regions of countries in order to funnel the looted wealth to their wealthy sponsors, they're just afraid of losing their hegemony.
Trade is fine, but I wouldn't trust a damn thing any of these ghouls have to say about it.
Oh no, not all the GDP gains that were created ever since wage growth stopped tracking productivity!
This is the best summary I could come up with:
The world economy is on the brink of a second cold war that could “annihilate” progress made since the collapse of the Soviet Union, a senior International Monetary Fund official has warned.
Gita Gopinath, the IMF’s first deputy managing director, said the accelerating fragmentation of the world economy into regional power blocs – centred around the US and China – risked wiping out trillions of dollars in global output.
Warning that the world was at a “turning point” as tensions mounted between the planet’s most powerful nations, Gopinath urged governments to pull back from the brink and work together on shared economic priorities where possible.
International trade and investment flows have stumbled in recent years amid a breakdown in relations between some of the world’s most powerful economies, with a rise in protectionist policymaking since the 2008 financial crisis.
Disruption to lengthy supply chains during the Covid pandemic has accelerated the process, amid a wave of “reshoring” and “friendshoring” – firms sourcing key materials from domestic suppliers or those in politically aligned nations.
Governments are also making billions of dollars available to kickstart domestic economic growth and job creation, while nurturing green industries to combat the climate emergency.
The original article contains 681 words, the summary contains 198 words. Saved 71%. I'm a bot and I'm open source!
For fucks sake. This is the worst time for this shit since climate change needs our full attention.
That battle was lost decades ago. We must focus on repair.
My defense stocks are going to do so well! Northrop Grumman Corp., TransDigm Group Inc., L3Harris Technologies Inc., Howmet Aerospace Inc., Textron Inc., Curtiss-Wright Corp., CAE Inc., and Joby Aviation Inc.
Thanks Russia, China, and Hamas!