‘Guns vs. Butter’: IMF Flags Tough Trade-Offs as Governments Ramp up Defense Spending

‘Guns vs. butter’: IMF flags tough trade-offs as governments ramp up defense spending

The International Monetary Fund has raised the alarm over a global “guns versus butter” trade-off as countries ramp up defense spending.

Wars Impose Lasting Economic Costs, While More Defense Spending Means Hard Choices

Credit: 279photo/iStock by Getty Images. Source: IMFBy Hippolyte Balima, Andresa Lagerborg and Evgenia WeaverWASHINGTON DC, Apr 16 2026 (IPS) War is again defining the global landscape. After decades of relative calm following the Cold War, the number of active conflicts has surged in recent years to levels not seen since the end of the Second World War. Meanwhile, rising geopolitical tensions and heightened security concerns are prompting many …