International Monetary Fund (IMF) Chairman Giorgio Eva (centre) and World Trade Organization (WTO) Secretary-General Iweala (left) both warned on Tuesday of the negative impact of "deglobalization" on the global economy.

On the right is German Chancellor Scholz.

(European News Agency)

[Compile Lu Yongshan/Comprehensive Report] Since the beginning of this year, as the Russia-Ukraine war has continued, global economic growth has slowed down, and trade protectionism has risen. International Monetary Fund (IMF) Chairman Kristalina Georgieva and World Trade Organization (WTO) Secretary-General Ngozi Okonjo-Iweala, both on Tuesday "de-globalization" (

deglobalization) warned of the negative impact on the global economy and called for sensible action to diversify supply chains.

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Georgieva said at a press conference after meeting with German Chancellor Scholz that globalization is facing its biggest challenge since World War II after the outbreak of the COVID-19 pandemic and the Russo-Ukraine war, "but don't put the baby with the bathwater." Throw it away (throw it all out, good or bad), don't stop the trade that makes the world a better place".

Iweala echoed that in the same press conference, the WTO estimated that if the global economy is divided into two trading blocs, it will reduce the global GDP by 5% in the long run. "Withdrawing from global trade and implementing protectionism will make it harder for us to survive Protectionism, decoupling, and fragmentation are very destructive and costly unless solutions to current problems are made easier

".

Both Georgieva and Iwera pointed out that the impact of deglobalization and fragmentation will hit developing and emerging countries the hardest.

Noting that these countries could experience a double-digit drop in GDP as a result, Iwella called for action to decentralize manufacturing with sensible action and warned against over-reliance on friend-shoring.

Friendly shoreshoring refers to the establishment of supply chains in reliable political allies, which politicizes economic issues.

Georgieva said that the growth of the world's two largest economies, the United States and China, is slowing down. Data show that the global economic growth rate next year may be lower than the 2.7% estimated by the IMF in mid-October this year, and said that about a third of the world's The economy, and about half of the EU's membership, will slip into recession next year, and inflation is now forecast to persist for longer, likely to gradually ease to around 6.5 percent next year.

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