The World Economic Forum report indicates that the economic costs of global fragmentation could surpass those of the Covid-19 pandemic and the 2008 financial crisis. Increasing sanctions and subsidies have led to a potential reduction in global GDP by up to $5.7 trillion and a rise in inflation. The report stresses the need for sustainable economic practices to mitigate these impacts. Fragmentation could lead to significant economic separation between Eastern and Western blocs, affecting trade and capital flows.