The IMF report on geoeconomic fragmentation challenges food security and green transition, estimating that commodity fragmentation will cost 0.3% of global GDP, around US$101,003 trillion, in 2022.The fragmentation of the global commodity market stems from the split into two geopolitical blocs where substantial price discrepancies occur between Russian and Ukrainian backers, particularly for agricultural and mineral commodities.It is believed that low-income and vulnerable countries could lose 1.2% of GDP, with peaks of 2%. These countries are substantially dependent on food imports; therefore, a conceivable heavy negative effect is the interruption of food imports.The food sector is under pressure due to climate change and the segmentation of the global commodity market into two geopolitical blocs. According to the International Monetary Fund, multilateral collaboration strengthens food supply chains and creates green corridors for vital minerals.For this reason, politics is called to limit the vulnerabilities and fragmentation of the global raw materials market with solid macroeconomic, structural and fiscal interventions.The fragmentation of the global commodity market affects neutral or non-aligned Indonesia. Global wheat prices have driven wheat flour and soybean prices to record highs. Rising nickel prices and investments in nickel processing, electric vehicle batteries and electric vehicles have also benefited Indonesia.Link di fonte: https://www.kompas.id/baca/ekonomi/2023/10/04/fragmentasi-pasar-komoditas-dunia-dan-dampaknya-bagi-indonesia (ICE GIACARTA)

Fonte notizia: Kompas - 5 October 2023