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"Ifwedecoupleintotwotradingblocks,itwillcosttheworlda5percentlossinglobalGDPinthelongerterm.TheIMFestimates(long-termcostoftradefragmentationcouldbeashigh)7percent(ofglobalGDP),"shetoldaforumonTuesdayduringthe14thAnnualMeetingoftheNewChampions,alsoknownastheSummerDavosForum.Theevent,themed"Entrepreneurship:TheDrivingForceoftheGlobalEconomy",runsfromTuesdaythroughThursdayinTianjin.
"That"slikesayingthatwelosetheequivalentofthewholeeconomyofJapan,whichwillbecatastrophicfortheworld,"sheadded."So,decouplingandfragmentationissomethingthattheworldsimplycannotaffordtohave."
Whenitcomestotheheadwinds,Okonjo-IwealasaidWorldBankresearchshowsthatthelong-termgrowthpotentialofbothdevelopedanddevelopingcountries,andemergingmarketeconomiesaredecliningduetosomestructuralfactorslikedemographics,callingformoreeffortstoharnessareaswherethereisproductivitygrowthandwhereyounglaborcanhelptheglobaleconomy.
Despitethechallengesahead,shestillseessomeopportunitiesinworldtradeincludingtherapidlygrowingdigitallydeliveredservicesandthegrowthpotentialingreentrade.
ouyangshijia@chinadaily.com.cn
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