Gaza War Impacts Arab Economies

Gaza War Impacts Arab Economies

Gaza War’s Economic Cost on Arab Neighbors

A recent study by the United Nations has found that the Israel-Hamas war in Gaza is negatively affecting neighboring Arab economies, specifically Lebanon, Egypt, and Jordan. The study estimates that the economic cost of the conflict could reach 10 billion dollars this year, pushing more than 230,000 people into poverty.

Challenges Faced by Arab Countries

Lebanon, Egypt, and Jordan are already dealing with fiscal pressures, slow growth, and high unemployment rates. The war has made it even more difficult for these countries to attract investments, and it has also impacted consumption and trade.

The Impact on Lebanon

Lebanon is currently facing a deep economic crisis, and the Gaza war has added to its challenges.

The Cost of the Conflict

The UN study suggests that the three Arab countries could experience a loss of GDP amounting to 10.3 billion dollars, which is equivalent to 2.3 percent. If the conflict continues for another six months, this cost could double.

“This is a massive impact,” says Abdallah Al Dardari, the UN assistant secretary-general and Director of the Regional Bureau for Arab States. He emphasizes that the crisis has worsened an already fragile regional situation and created fear and uncertainty.

The Devastation in Gaza

The war began when Israel launched a campaign against the Hamas militant group in Gaza. The conflict has resulted in the deaths of many civilians and the destruction of a significant portion of the region. According to the study, the level of destruction in Gaza within a short period has been unprecedented since World War II.

The war has also led to the displacement of almost 80 percent of Gaza’s population, surpassing the refugee crisis caused by the decade-long Syrian conflict.

Gaza Situation Deteriorating

Reconstruction Efforts

The study’s leader, Abdallah Al Dardari, who specializes in reconstruction in conflict zones, has already started reaching out to development funds and financial institutions for post-war reconstruction scenarios in Gaza. The efforts to rebuild and recover have already begun.

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