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As of May 8, 2025, the conflict between India and Pakistan has drawn global attention, profoundly impacting geopolitical stability and economic markets. Below is an economic analysis of this conflict:

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🌏 Global Economic Impact: Supply Chain and Food Security Risks

• Disruption of Food Supply Chains: India and Pakistan are the world's first and fourth largest rice exporters, respectively. The conflict could lead to export disruptions, posing risks of rising food prices and supply shortages for Southeast Asian countries that rely on imports, such as Malaysia, Singapore, and Indonesia.

• Energy and Manufacturing Supply Chain Risks: A prolonged conflict could affect energy transportation and manufacturing supply chains in South Asia, further disrupting global trade and exacerbating inflationary pressures.

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🧭 International Community Response and Future Outlook

• Diplomatic Calls for De-escalation: Countries such as the United States, the United Kingdom, China, and Turkey have called for restraint from both sides to avoid escalation of the conflict. However, both sides have not shown signs of easing tensions, increasing the risk of regional instability.

• Economic and Environmental Costs: Experts warn that a full-scale conflict could lead to a slowdown in global economic growth and cause severe environmental damage.

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