Washington DC - The International Monetary Fund (IMF) expressed concern that geopolitical tensions and economic fragmentation could pose a threat to global financial stability. In its latest report, the IMF highlighted a number of risks that could potentially destabilize the world economy.

One of the major concerns is the ongoing trade tensions between the United States and China, which have led to the imposition of tariffs and other trade barriers. These tensions have not only affected the two countries directly involved, but also their trading partners and other countries that rely heavily on global trade.

Another area of concern is the increasing trend towards economic nationalism, with countries adopting protectionist policies that could disrupt global supply chains and hinder economic growth. This could lead to a fragmentation of the global economy, with each country focused on its own interests and less willing to cooperate with others.

The IMF also noted the risks associated with high levels of debt in both advanced and emerging economies, which could leave them vulnerable to economic shocks or a sudden tightening of global financial conditions.

To mitigate these risks, the IMF called for greater international cooperation and coordination, as well as policies that support economic growth and reduce trade barriers. The report also emphasized the importance of financial regulation and supervision to ensure the stability of the global financial system.