Geopolitical Strife May Cost Global Economy $14.5 Trillion: Lloyd’s

Lloyds of London reported on Wednesday that geopolitical conflict could cost the global economy as much as $14.5 trillion over the next five years, largely due to supply chain disruptions. The report outlines how conflicts impacting global trade routes and infrastructure damage in affected zones could have far-reaching economic consequences.

The ongoing conflicts in Ukraine and Gaza have already disrupted maritime shipping routes in the Black Sea and Red Sea, highlighting the vulnerability of global supply chains. With over 80% of the world’s imports and exports—equivalent to approximately 11 billion tons of goods—being transported by sea, the shutdown of major trade routes could severely impact global commerce.