Washington: The International Monetary Fund (IMF) claimed in its new report that the global economy will get divided into groups on the geopolitical level, given the Russia-Ukraine conflict. The IMF recently released the report ‘World Economic Outlook’ for the second quarter of the financial year. The report mentions the perceived threats to the global economy in the next few years. In this, the IMF has pointed to the possibility of division in the global economy.
Moreover, in its report, the IMF has predicted that the future of the global economy has become darker and uncertain. IMF has warned in the report that there is a serious threat of the global economy dividing on the geopolitical level given the Russia-Ukraine conflict. The technological criteria will be different in these groups and systems to interact with each other and reserve currencies also may differ. The international community will be unable to find a collective solution to the important global problems given this division.
IMF has also warned that it will not be possible to take collective action on issues like climate change, and today’s food shortage will acquire dangerous proportions. 
IMF has also noted in the report that the intensity of the threats to the financial and trade sectors have increased given the Russia-Ukraine conflict. This is the IMF’s second instance pointing to a global economy division.
A few months ago, Kristalina Georgieva, director of the IMF, made a statement in this regard. Georgieva had warned that the fear of countries being divided into geopolitical groups has increased. Russian President Vladimir Putin also warned that the global systems would not remain the same after the Ukraine conflict. Whereas German Chancellor Olaf Scholtz had said that the Russia-Ukraine conflict has rocked the process of globalisation.
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