IMF says U.S-China tensions could cost the world about 2% of its output

• The most notable push for "friend-shoring," the IMF says in its report, is seen in the series of recent bills adopted against the backdrop of rising tensions between the U.S. and China.
• The IMF warns emerging markets are more vulnerable to the shift in foreign investment stemming from geopolitical divides as "they rely more on flows from more geopolitically distant countries."

WASHINGTON D.C., UNITED STATES - DECEMBER 26: The International Monetary Fund (IMF) building is seen in Washington D.C., United States . . .