The number of restrictions on international trade has quadrupled in recent years, which has a detrimental impact on the world economy . “If we analyze the industrial policy measures, 2,500 of them have been adopted in recent years, 70% of which are destructive, trade-negative measures”. This was said by the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, speaking at a special session of the World Economic Forum in Riyadh.
She also questioned the wisdom of trade restrictions that governments are putting in place to decarbonize their economies and ensure the energy transition. “There is an industrial policy that is driven by the desire to accelerate decarbonisation. This is exactly the logic behind some of today's measures, but it is not yet known whether you are doing it wisely, she stressed.
The IMF estimates that global economic growth will slow to just over 3% by the end of the decade, about one percentage point below the pre-pandemic average. Georgieva pointed to the fragmentation of the world economy and declining productivity as the main reasons for the delay. According to her, overcoming fragmentation will provide additional economic growth of 1.2 percentage points. by 2030