Geneva Reports on the World Economy
Geneva 28: Geopolitical Tensions and International Fragmentation: Evidence and Implications
The 28th Geneva Report examines how rising geopolitical tensions are reshaping global finance. The cooperative order that supported decades of economic integration shows signs of fragmentation. Trade, investment, and financial linkages are being redrawn. The authors explore how geopolitics is driving these shifts - from reconfigured payment systems to changing reserve currency use – and assess the implications for the efficiency and resilience of international finance. They warn that new geopolitical fault lines risk weakening the global financial safety net and complicating crisis coordination. The report highlights the uneven costs of fragmentation, with emerging economies particularly exposed, and calls for policies that preserve openness, strengthen resilience, and reform international institutions to foster stability in an increasingly multipolar world.
