Higher trade barriers against China and other countries over the past year could cost the global economy $1.4 trillion, in addition to the serious damage caused by the war in Ukraine, IMF chief Kristalina Georgieva said.

For Asia, the potential loss could be double that, or more than 3 percent of GDP, because the region is more integrated into the global value chain, she said.

Although it would cause significant damage to the global economy, the biggest factor hindering global growth remains the war in Ukraine, Georgieva said.

The IMF also warned that inflation is hitting developing countries hardest and urged central banks to continue to fight rising prices. The strengthening dollar, expressed in double digits this year, continues to cause headaches in emerging markets as investors flock to safe havens amid signs that much of the world economy may be heading toward recession.

Georgieva said Asian countries must work together to overcome fragmentation to sustain growth, especially in light of a host of other economic shocks related to Covid-19, the war in Ukraine and rising costs of living.

Nevertheless, she said, Asian countries are much better prepared for economic shocks because of the region's substantial reserves and cooperation.

As for the growing risk of sovereign debt in emerging markets, Georgieva said the IMF is "not alarmed yet, but wary. About 25 percent of emerging market countries are trading in distressed territory, while 60 percent of low-income countries are in or close to debt distress. She urged countries struggling because of the rising cost of servicing dollar-denominated debt and the global economic situation to be proactive and seek help from the fund as early as possible.

The IMF calculations show that about one-third of the global economy will shrink for at least two quarters in a row this year and next year, with output losses to 2026 amounting to 4 trillion dollars.

Georgieva pointed to the particular difficulties facing the European Union because of the war in Ukraine, which could put pressure on the region's central banks to abandon efforts to fight inflation too soon.