Long-Term Economic Impact of Wars
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy LMT?
Source: seekingalpha
- Significant Economic Losses: The IMF analysis reveals that conflicts reduce economic output by approximately 7% within five years of onset, with losses often persisting beyond the cessation of hostilities, highlighting severe consequences such as destroyed infrastructure, disrupted trade, and declines in productivity.
- Global Economic Impact: Conflicts not only affect directly impacted countries but also exert pressure on regional and global growth through trade, migration, and financial channels, exacerbating economic challenges, particularly in nations with constrained fiscal space.
- Rising Military Expenditure: The IMF warns that global defense spending is projected to reach $2.63 trillion by 2025, with increasing military expenditures potentially widening fiscal deficits and pushing up public debt; while such spending may provide short-term economic support, it often undermines investment in critical areas.
- Policy-Making Challenges: The IMF emphasizes that policymakers face “difficult macroeconomic trade-offs” as they balance security needs with economic stability, noting that rebuilding post-conflict economies requires sustained reforms, strong institutions, and international support to restore confidence and achieve durable growth.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 623.870
Low
430.00
Averages
535.50
High
605.00
Current: 623.870
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Military Readiness Escalation: Following the breakdown, Trump downplayed its significance, asserting U.S. strategic superiority while revealing preparations for potential hostilities, indicating heightened vigilance and urgency in military deployments amid rising tensions.
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See More
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