Kristalina Georgieva, International Monetary Fund managing director, says the world has to avoid the temptation to fall back on protectionism on its way to economic recovery.

Ms Georgieva made the plea on Thursday at the Brussels Economic Forum, saying reviving multilateral cooperation is essential for long-term growth everywhere, warning that trade fragmentation could cost up to seven per cent of global GDP in the long term.

“If technological decoupling is added, some countries could see up to 12 per cent of GDP losses. We cannot ignore these costs,” she added.

Ms Georgieva also called on governments to improve economic productivity and provide opportunities for everybody, noting that the efforts require structural reforms and investing in people, technology, and innovation.

She urged European countries to implement measures for innovation and investment.

Georgieva said, “This means streamlining regulations, improving education, spending more on research and development, and expanding digital and green infrastructure.’’

The IMF chief also supported accelerating the transition toward a green economy in the European Union.

However, she acknowledged that reaching that goal would be difficult if building solar or wind farms took several years.

To achieve that, Georgieva called on countries to apply Germany’s experience, which built new LNG terminals in record time.

(Sputnik/NAN)