US-China Tensions Fragmenting Trade and Investment, IMF Finds.

A recent study by the International Monetary Fund (IMF) has found that the global economy is becoming divided between US- and China-centered blocs, although the level of fragmentation is less than during the Cold War. Trade flows between the two blocs have declined by about 12% more than trade within the same bloc since Russia's invasion of Ukraine in 2022. Foreign direct investment projects have also fallen by around 20% more between blocs than within blocs. However, the decline in trade and investment is much smaller than during the Cold War, and many non-aligned economies are benefiting from their role as "connector" economies between the two blocs. The IMF warns that if geopolitical tensions persist and trade restrictive policies intensify, the level of fragmentation could worsen considerably. [Extracted from the article]