During a press conference at the official start of the World Bank and IMF’s spring meetings, IMF Chief Kristalina Georgieva warned against a ‘Second Cold War’ amid the challenge to the USD by BRICS and trade tensions between China and the US.
Kristalina Georgieva, the International Monetary Fund’s managing director said on Thursday that countries must do more to avert the costly consequences of growing global trade fragmentation and help avert a “second Cold War.”
Georgieva’s comments came during a press conference at the official start of the World Bank and IMF’s spring meetings.
“I don’t want to see that repeating,” she said, adding that the world should “rationally accept there will be some cost, there will be some fragmentation, but keep these costs low.”
She said that multilateral institutions like the World Bank and IMF have an important role to play in preventing the world from dividing into different blocs with severe economic consequences.
An IMF report earlier this week predicted that growing trade fragmentation resulting from events like Brexit, the US-China trade war and the Russa-Ukraine war could make the global economy as much as seven per cent smaller than it otherwise would have been.
According to reports, India has stopped talks on a UK trade deal after supporters of the Khalistan movement attacked its embassy in London.