IMF: Trade is no longer the driver of the economy due to sanctions

The world trade has ceased to be the driver of global economic growth, and all because of sanctions, the International Monetary Fund has stated.

IMF Director Kristalina Georgieva pointed to the "negative factor of fragmentation for global economic growth." Over the past 18 months alone, more than 4,000 restrictive measures have been introduced, 60% of them by large economies. According to the fund's analysts, about two-thirds of the sanctions are detrimental to trade.

Kristalina Georgieva, Managing Director of the International Monetary Fund:

"Not only is development aid too small, but large players, driven by national security considerations, are increasingly resorting to industrial policy and protectionism, creating one trade restriction after another. In the future, trade will not serve as the engine of economic growth that it once did. I warned about this split back in 2019, only now it is even worse. It's like pouring cold water on an already lukewarm global economy".

Well, if we take examples, the British economy, contrary to forecasts, stagnated for the second month in a row. The reason was the decline in the manufacturing industry and construction. In addition, the energy crisis caused a shock wave. Experts predict a sharp increase in electricity bills for residents of the Kingdom.

European healthcare is also experiencing a severe decline. There is a catastrophic shortage of doctors. Due to the lack of state funding and low salaries, many doctors are leaving the profession. Thus, British ambulance workers, of whom there are fewer and fewer every month, were offered to leave patients in the corridors of clinics without waiting for registration in order to save time for going out on other calls.

And Greek trade unions announced a large-scale strike of workers, including sailors, primary school teachers and school cleaners. The demands are mainly economic. The action will last until Friday.