The World Economic Forum (WEF) has issued a stark warning that ongoing global economic fragmentation could reduce worldwide gross domestic product by $6.9 trillion.
The report, published on June 29, underscores the severe long-term costs of decoupling and protectionist policies that have gained momentum in recent years.
According to the WEF, the period spanning 2025 and 2026 has been marked by significant swings in policy enforcement and regulatory uncertainty across major economies.
These fluctuations have directly impacted business confidence, leading to delayed investment decisions and reduced hiring activity.
The organization notes that this environment exacerbates inflationary pressures and creates particular instability for emerging markets, which are often more vulnerable to shifts in global trade flows.
The findings come at a time when market participants are grappling with divergent economic signals.