Skip to content
Subscriber Only

All-Out Trade War Could Cost Global Economy $1.2 Trillion

Collateral Damage

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here

The recent escalation in the trade war could cost the already fragile world economy dearly. Modelling by Bloomberg Economics shows that global GDP would be 0.6% lower in 2021 if the market slumps during an all-out trade war, compared to a no trade war scenario. That’s the equivalent of a $1.2 trillion hit to the global economy.