IMF warns against fragmentation of global economy, sees 7% hit to GDP

The International Monetary Fund on Thursday underscored its concerns about global trade breaking into separate blocs, saying such developments could reduce global economic output by 7 per cent.

"We believe that that would be costly for the global economy," IMF spokesperson Julie Kozack told reporters at a regular briefing. "That's what our analysis suggests, that fragmentation can reduce global GDP by 7 per cent which is the size of Germany and Japan."