{"id":29769,"date":"2025-02-01T08:36:18","date_gmt":"2025-02-01T03:06:18","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=29769"},"modified":"2025-04-09T10:42:55","modified_gmt":"2025-04-09T05:12:55","slug":"geo-economic-fragmentation","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/geo-economic-fragmentation\/","title":{"rendered":"Geo-Economic Fragmentation"},"content":{"rendered":"<h2>Geo-Economic Fragmentation Latest News<\/h2>\n<p>The Economic Survey 2024-25 stated that global economic integration is backsliding, with geo-economic fragmentation replacing globalization, leading to a significant rise in trade restrictions.<\/p>\n<h2>About Geo-Economic Fragmentation<\/h2>\n<ul>\n<li>\u2018Geo-economic fragmentation\u2019 can be defined as a <strong>policy-driven reversal of global economic integration <\/strong>often <strong>guided by strategic consideration<\/strong>s.\u00a0<\/li>\n<li>It is characterized by <strong>countries forming trade and financial partnerships based on geopolitical alignments.<\/strong><\/li>\n<li>This process encompasses different <strong>channels, including trade, capital, and migration flows.<\/strong><\/li>\n<li>This trend, marked by a <strong>retreat from multilateralism<\/strong>, has made geography less relevant than geopolitics in trade and investment decisions.<\/li>\n<li>Such fragmentation would <strong>result in permanent losses to global GDP.<\/strong><\/li>\n<li>Based on IMF estimates, the costs of geoeconomic fragmentation can range from 0.2 percent to up to 7 percent of GDP in some economies.<\/li>\n<li>These losses can emanate from <strong>technological decoupling, trade restrictions, reduced capital movements<\/strong> owing to higher risk aversion, and a <strong>decline in international cooperation <\/strong>in the provision of global public goods among economies.<\/li>\n<li><strong>Trade is the main channel <\/strong>through which fragmentation is reshaping the global economy.<\/li>\n<li>The impact of geo-economic fragmentation is seen in global <strong>FDI flows<\/strong>, which <strong>are increasingly concentrated among geopolitically aligned countries,<\/strong> particularly in strategic sectors.\u00a0<\/li>\n<\/ul>\n<h2>Geo-Economic Fragmentation FAQs<\/h2>\n<p><strong>Q1<\/strong>. What is meant by geo-economics?<\/p>\n<p><strong>Ans<\/strong>. Broadly, one can think of geoeconomics as the interplay of international economics, geopolitics and strategy.<\/p>\n<p><strong>Q2<\/strong>. What are the effects of economic fragmentation?<\/p>\n<p><strong>Ans<\/strong>. Fragmentation not only fuels inflation, but also negatively impacts economic growth prospects, particularly in emerging markets and developing economies that depend on an integrated financial system for their continued development.<\/p>\n<p><strong>Q3<\/strong>. What are the major barriers to global economic flows?<\/p>\n<p><strong>Ans<\/strong>. The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.newindianexpress.com\/business\/2025\/Jan\/31\/economic-survey-time-to-reinforce-internal-growth-engines-as-global-trade-barriers-surge\" target=\"_blank\" rel=\"nofollow noopener\">NIE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Geo-economic fragmentation can be defined as a policy-driven reversal of global economic integration often guided by strategic considerations.<\/p>\n","protected":false},"author":5,"featured_media":29770,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-29769","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/29769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=29769"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/29769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/29770"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=29769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=29769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=29769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}