Lasting economic costs of warAt the same time, they noted, rising geopolitical tensions and heightened security concerns are prompting many governments to reassess their priorities and spend more on defense. Wars, they point out, impose large and lasting economic costs, and pose difficult macroeconomic trade-offs, especially for those countries where the fighting is taking place. Even without active conflicts, rising defense spending can raise economic vulnerabilities in the medium term. After the war, governments face the urgent post-conflict task of securing durable peace and sustaining recovery. In an era of proliferating conflicts, the IMF research highlighted the deep and prolonged economic harm inflicted by war.

Source: Philippine Star April 09, 2026 16:38 UTC