DAVOS: A new report by the World Economic Forum (WEF) has revealed that growing geo-economic fragmentation could potentially decrease global GDP by as much as USD 5.7 trillion. This alarming figure suggests that the economic toll of such fragmentation could surpass the impacts of the 2008 financial crisis and the COVID-19 pandemic.

The report, released during the WEF’s Annual Meeting 2025, highlights how countries are increasingly leveraging global financial and trading systems to meet geopolitical ends. Sanctions, industrial policies, and other economic measures are being utilized by nations to achieve strategic objectives, contributing to a more fragmented international economic landscape.

According to the findings, India and several other emerging economies are likely to bear the brunt of economic disruptions associated with worst-case fragmentation scenarios. As nations prioritize national interests over global cooperation, the ramifications could lead to significant economic losses in these regions.

The report serves as a stark reminder of the interconnectedness of the global economy and the risks posed by rising protectionist measures. If measures aren’t taken to mitigate fragmentation, the long-term consequences may reshape the future of international trade and economic collaboration.

As global leaders gather in Davos, the report calls for urgent dialogue and action to counteract the forces driving fragmentation, urging nations to foster cooperation rather than division in these challenging times.