Israel-Gaza war: World Bank's Ajay Banga sounds alarm on economic consequences of Israel-Gaza conflict
Israel-Gaza war: World Bank President Ajay Banga has expressed concerns about the economic repercussions of the Israel-Hamas conflict. He emphasized that the ongoing geopolitical tensions around the world, including the recent war in Israel and Gaza, could have a significant impact on global economic development.
Banga stated that the world is currently facing a precarious situation and highlighted that geopolitical tensions pose the most substantial threat to the world economy.
He further pointed out that economic risks can rapidly shift and should not be disregarded. For instance, he mentioned the recent development in the United States, where the yield on the US 10-year Treasury briefly surpassed 5%. This kind of fluctuation in financial markets can be a cause for concern.
The Israel-Hamas conflict has been ongoing, with casualties on both sides. As of the latest reports, Hamas terrorists entered Israel from the Gaza Strip, resulting in casualties, and they have been holding hostages. In retaliation, Israel conducted air strikes that resulted in Palestinian casualties. The situation remains complex and continues to draw international attention.
Furthermore, French President Emmanuel Macron recently arrived in Tel Aviv, expressing support for Israel in its fight against terrorism. He conveyed solidarity and assured Israel that it is not alone in this struggle.
The economic impact of such conflicts can be far-reaching, affecting not only the nations directly involved but also the global economy, which is a matter of concern for organizations like the World Bank. The situation remains fluid, and efforts are ongoing to address both the immediate security issues and their potential economic consequences.
- With inputs from agencies
