A new study published by the International Monetary Fund (IMF) finds that coups d’état have significant and long-lasting economic consequences, leading to slower growth and a sharp decline in investment in affected countries.

Titled Political Fragility: The Economic Impact of Coups d’État, the study estimates that a coup reduces GDP growth by an average of 2.3 percentage points in the first year alone. The effects persist over time, resulting in a cumulative loss of about 5 percentage points of GDP growth over the following five years.

According to IMF researchers, economic sanctions imposed after some coups are among the main factors that worsen the economic impact. These measures often further weaken economic activity by reducing private consumption and investment.

The study highlights investment as the sector most severely affected. Political uncertainty following a coup frequently causes investors to postpone or cancel projects, limiting economic prospects and slowing development.

The IMF also notes that coups often occur in countries already facing economic and institutional challenges, including weak growth, high inflation, security concerns, and governance issues. These conditions increase the risk of both political and economic instability.

The authors argue that stronger governance, sound macroeconomic policies, and improved living conditions remain the most effective safeguards against political crises that can undermine long-term economic development.