North India Statesman
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Davos wef news: According to a study, the world GDP is expected to decrease by $ 5.7 lakh crore due to rising geographical and economic division policies in the world, which will be more disastrous than the 2008 economic crisis and corona epidemic. India and other emerging economies may be the most affected by these divisive policies. The World Economic Forum released the report at its 2025 annual meeting.
The World Economic Forum, while presenting a report at its annual meeting in 2005, said that the use of global financial and business system has increased to achieve geopolitical objectives through restrictions, industrial policies and other economic matters.
The Navigating Global Financial System Fragmentation Report estimates that the government’s fragmentation policies may cause the world’s economies to lose $ 0.6 trillion to $ 5.7 trillion. Due to low trade and financial transactions between countries, the world’s GDP may fall by up to five per cent. If geographical and economic divisive policies increase, world inflation can also be more than five percent.
With the discussion about creating a parallel financial structure around the world, discussion about subsidies and industrial policies, the amount of economic sanctions imposed by one country on another since 2017 has increased by 370 percent. Financial systems are being rapidly used by countries to achieve their geo-economic objectives. The World Economic Forum said that the policies adopted by the top leaders of the world have an impact on inflation rate and GDP growth. If the trend of geo-economic policies increases, it will affect the GDP growth of India, Brazil and Türkiye. Similarly, countries of Latin America and Africa may also be the biggest burden. In extreme cases of geographical and political separatist policies, complete economic separatism between East and West can occur, which may only make Non -Aligned countries forced to trade with their economic partners. The GDP growth of these countries may see a decline of more than 10 percent, which can be doubled from the global average.
