Trade and Investment

Asia and the world face growing risks from economic fragmentation, says IMF

Tokyo, Japan at night

Interdependencies between economies mean that economic fragmentation would be very costly, especially for Asia Image: Unsplash/Jezael Melgoza

Diego Cerdeiro
Economist, IMF
Siddharth Kothari
Economist, IMF’s Asia and Pacific Department
Chris Redl
Economist, IMF
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Graph showing the trade uncertainty contribution to World Uncertainty Index, as a percentage
Signs of trade fragmentation are increasing, with trade-related uncertainty surging in recent years. Image: Ahir, Bloom and Furceri 2022
Figure showing the peak of cumulative effects
Increased trade policy uncertainty reduces investment and economic output and raises unemployment for years Image: Ahir, Bloom and Furceri
Figure showing the estimated aggregate GDP losses from trade fragmentation
Permanent economic output losses due to lower productivity from global trade fragmentation can be significant. Image: IMF
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Trade and InvestmentEconomic ProgressGeo-economics
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