Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

IMF: Fiscal Monitor Divides World into Three Major Groups

Wed 08 May 2024 | 11:11 PM
Taarek Refaat

The International Monetary Fund said that the global economy, under the influence of geopolitical differences, has divided into three groups, namely countries dependent on the United States and China and unrelated and independent countries.

These countries are “41 advanced economies, 96 emerging market and middle-income economies, and 58 low-income developing countries,” according to the IMF.

The Fund said in a report on the impact of geopolitical affairs on global trade: “It is observed that there is a world divided into three blocs: one based on the United States, another based on China, in addition to a bloc of unrelated countries.”

According to International Monetary Fund estimates, the trend towards dividing the global economy into separate groups has led to an increase in the number of trade restrictions imposed on goods, services and investments, the total number of which exceeded 3,000 in 2023.

In addition, the International Monetary Fund noted that from 2017 to 2023, China's share of imports to the United States declined by 8% amid growing contradictions between Beijing and Washington.

Also, according to the Fund’s estimates, direct trade between Russia and the West “collapsed” against the backdrop of the Ukrainian conflict.