Economic impact of Israeli-Palestinian conflict "relatively contained but highly uncertain:" IMF

(Xinhua) 13:12, December 08, 2023

WASHINGTON, Dec. 7 (Xinhua) -- The International Monetary Fund (IMF) said on Thursday that the economic impact of the Israeli-Palestinian conflict has been "relatively contained" so far, but is "highly uncertain."

The economies of Israel and West Bank-Gaza, which are at the core of the conflict, will be hardest hit, IMF spokesperson Julie Kozack said at a press briefing.

She added that the IMF expects the conflict to "severely depress economic activity" in both the West Bank and Gaza, "where even before the conflict, GDP growth was set to decline over the medium term."

"But the ultimate impact will depend on the duration and intensity of the conflict," she said.

As for other places in the region, "the conflict may affect the immediate region through a number of channels," Kozack said.

"The channels include tourism, you could see a reduction in tourism in these neighboring countries. We have the potential for higher oil and gas prices, disruptions to financial markets and disruptions to regional trade routes, and the potential for higher trade costs," she said.

(Web editor: Tian Yi, Liang Jun)


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