Trade and Financial fragmentation spreads beyond rivals as costs mount

By Indrani Chakraborty Geoeconomic fragmentation imposing an annual cost of $213–$307 billion on the global economy, according to a new World Economic Forum report release on June 4. Driven by geopolitical tensions, economic security concerns and shifting trade relationships across major economies, fragmentation accelerated through 2025 and 2026 and is increasingly affecting trade, finance and investment systems. The Cost of a More Fragmented Financial System — published in collaboration with Oliver Wyman, a Marsh business, and the second in the Forum’s fragmentation series — finds that these pressures are playing out through escalating tariffs, investment restrictions and retaliatory measures. The…