A significant economic impact is anticipated if Taiwan is cut off from the global economy due to a blockade or military aggression from China. Bloomberg Economics estimates that such a scenario could reduce global GDP by about $5 trillion in the first year. The U.S. GDP would decline by 3.3%, while China's economy would suffer an 8.9% hit. Jennie Welch, chief geoeconomics analyst at Bloomberg Economics, and her colleague Gerard DiPippo, highlighted these figures. Experts also warn of a one-in-four chance of a major crisis in the Taiwan Strait over the next five years. Additionally, some calculations suggest that a war in Taiwan could cost the world economy 10% of its GDP, nearly double the impact of the pandemic. The imposition of Western sanctions on China would exacerbate these economic losses.
According to some calculations, a war in Taiwan could cost the world economy 10% of its GDP, which is almost double the impact of the pandemic https://t.co/Ga3vOyECrK
“‘A real blockade that cut Taiwan off from the world would…cost the world economy about $5 trillion,’ @ThatJennieWelch, chief geoeconomics analyst at Bloomberg Economics, and her colleague Gerard DiPippo estimate.” https://t.co/BqI8e8HJyD
“‘A real blockade that cut Taiwan off from the world would…cost the world economy about $5 trillion,’” @ThatJennieWelch, chief geoeconomics analyst at Bloomberg Economics, and her colleague Gerard DiPippo estimate.” https://t.co/BqI8e8HJyD
“A total Taiwan cutoff, along with the imposition of Western sanctions on China, would reduce global GDP by about $5 trillion...in the first year, the [Bloomberg] team’s modelling shows. U.S. GDP goes down 3.3% in the first year. China’s hit is 8.9%.” https://t.co/muzukOD7SE
Any view of China’s display of military aggression as being business as usual brings with it global economic peril https://t.co/WHntNmKXIA via @economics Bloomberg Economics calculates about a one-in-four chance of a “major crisis” in the Taiwan Strait over the next five years