A potential military conflict around Taiwan could reduce global GDP by 10% – Bloomberg

According to analysts, the cost of military action is estimated at about $10 trillion, which is about a tenth of global GDP.

A potential military conflict around Taiwan could reduce global GDP by 10% - Bloomberg

Combined, this is more than the damage from the war in Ukraine, the COVID pandemic and the global financial crisis.

This is because Taiwan plays a key role in semiconductor production and the Taiwan Strait is an important route for global trade.