IMF warns of economic impact of Gaza war on neighbouring countries

The International Monetary Fund (IMF) is warning of the potential economic consequences of the war in Gaza for the region.
Tourism in neighbouring countries could decline and there is also the potential for higher oil and gas prices, Julie Kozack, IMF communications director, said on Thursday in Washington.
There could also be "disruptions to financial markets" and "disruptions to regional trade routes," she added. These could result in higher trade costs, Kozack said.
She emphasized that "from the global perspective, the economic impact so far has been relatively contained." However, the situation is "highly uncertain."
The economies of Israel, the West Bank and Gaza would naturally be the hardest hit, Kozack continued.
"But the ultimate impact will depend on the duration and intensity of the conflict," she added.
Kozack also noted that the IMF was "shocked and saddened by the humanitarian situation, and the loss of life in this conflict."
The Gaza war was triggered by the worst massacre in Israel's history, carried out by terrorists from Hamas and other groups on October 7 in Israeli communities near the border with the Gaza Strip. More than 1,200 people were killed.
In response, Israel launched massive airstrikes and, since the end of October, a ground offensive. According to the Hamas-controlled Health Ministry, nearly 17,200 people have now been killed in Gaza.
This cannot be independently verified at present, but the UN and observers point out that the authority's figures have proved to be generally credible in the past.



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