Original article by Shane Wright
The Age – Page: Online : 9-Apr-26

The International Monetary Fund has released a report which concludes that a major war reduces cumulative GDP by about seven per cent over five years. In contrast, the IMF estimates that a natural disaster reduces GDP growth by less than six per cent over the same time-frame, while a sovereign debt crisis cuts GDP by just 4.25 per cent. A separate report from the IMF notes that half of the world’s nations increased their defence spending between 2020 and 2024; the IMF says that about 40 per cent of all nations’ defence budgets now comprises at least two per cent of GDP, compared with just 27 per cent in 2018. The IMF researchers have also warned that a substantial increase in defence spending would require governments to reduce expenditure in other areas, such as health and education.

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