The International Monetary Fund (IMF) warns of the possible economic consequences for the immediate region in view of the Gaza war. For example, tourism in neighboring countries could decline, and there is also the potential for higher oil and gas prices, says IMF Communications Director Julie Kozack in Washington. At the same time, there could be “disruptions in the financial markets” and “interruptions in regional trade routes”. These could result in higher trading costs, says Kozack.
She emphasizes that from a global perspective, the economic impact has so far been “relatively limited”. However, the situation is “highly uncertain”. The economies of Israel, the West Bank and Gaza would “of course be the most affected,” Kozack continued. “But the ultimate impact will depend on the duration and intensity of the conflict.” She also stressed that the IMF was “shocked and saddened by the humanitarian situation and the loss of life” in this conflict.