The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has raised concerns about the economic repercussions of the ongoing conflict between Israel and Hamas in nearby countries, News About Nigeria reports.
Speaking at the Future Investment Initiative (FII) in Riyadh, Saudi Arabia, Georgieva highlighted the immediate economic effects on neighbouring nations such as Egypt, Lebanon, and Jordan.
Georgieva said, “You look at the neighbouring countries – Egypt, Lebanon, Jordan – where the channels of impact are already visible.”
She warned that the conflict could deal a significant blow to the global economy, particularly if it draws in other nations.
The conflict began when the Palestinian militant group, Hamas, staged an attack on Israel on October 7, resulting in casualties and hostage-taking. In response, Israel launched extensive air strikes and imposed a comprehensive land, sea, and air blockade on Gaza, where the conflict has claimed thousands of lives, as reported by the Hamas-run health ministry.
Kristalina Georgieva emphasised the potential economic consequences of the conflict, including reduced tourism and increased insurance costs for moving goods.
The uncertainty surrounding the situation may also deter investors, while the risk of further refugee crises in already burdened countries remains a concern.
“What we see is more jitters in what has already been an anxious world,” Georgieva said.
“You have tourism-dependent countries — uncertainty is a killer for tourist inflows.
“Investors are going to be shy to go to that place. Cost of insurance — if you want to move goods, they go up. Risks of even more refugees in countries that are already accepting more,” she said.
The Future Investment Initiative, known as ‘Davos in the Desert’, is an annual event where Saudi Arabia showcases domestic economic reforms. However, the ongoing conflict threatens regional stability, which is crucial for the success of these reforms.
