- Faultlines are appearing in the global economy
- Economists see a world split between US and China blocs
This time last year, the International Monetary Fund (IMF) issued a bleak warning. The Covid-19 pandemic and the war in Ukraine had “deepened cracks in the global economic order”, leaving the world facing a period of economic fragmentation.
Global production chains that we took for granted under more benign economic conditions suddenly looked precarious – and since then, the fragile bonds of globalisation have become more strained. The Israel-Hamas conflict has intensified tensions further, and economic behemoths America and China now find themselves on opposing sides.