Posted 12/12/2023, 11:29:00 AM
IMF Warns New US-China Cold War Could Cost $7 Trillion in Lost Economic Growth
- IMF warns a "Cold War II" between the US and China could wipe trillions from the global economy, offsetting gains made since the fall of the Soviet Union
- Ending of Cold War brought unprecedented economic integration, which new fragmentation could erase, costing 7% of global GDP ($7 trillion)
- US-China account for 43% of global GDP; economic ties have frayed amid trade wars and tensions over Taiwan
- US imports from China fell from 20% to 13% in 5 years as countries brace for decoupling
- Unclear which countries would side with US vs China compared to original Cold War as allies shift allegiances