Israel's War on Gaza: Neighboring Arab economies face $10B+ losses — UN

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(Photo: Ameer Khalifeh/Jordan News)
NEW YORK — A United Nations study has indicated that the economic impact of the war in Gaza on neighboring Arab countries, including Lebanon, Egypt, and Jordan, could exceed $10 billion this year, pushing over 230,000 people into poverty. اضافة اعلان

The conflict in the besieged Gaza Strip has occurred during a challenging period for Arab nations, marked by financial pressures, slow growth, and high unemployment rates, hindering necessary investment and adversely affecting consumption and trade. Lebanon is particularly grappling with a deep economic crisis, Al-Mamlaka TV reported.

2.3 percent of the GDP
Commissioned by the United Nations Development Program, the study highlighted that the war's cost for the three countries, in terms of gross domestic product losses, might reach $10.3 billion or 2.3 percent of GDP.

This figure could double if the conflict persists for an additional six months.
Abdallah Al-Dardari, Assistant Secretary-General of the United Nations and Director of the Regional Office for Arab States at the United Nations Development Program overseeing the study, described the impact as "huge." He emphasized that the crisis acted like a bomb in an already fragile regional situation, heightening tensions with fears about the potential outcomes.

Israel initiated its military campaign to eliminate Hamas, which controls the Gaza Strip, relying on international sympathy following the "Al-Aqsa Flood" operation on October 7. Since then, Israeli forces have besieged the Strip, reducing much of it to rubble. Palestinian health authorities confirm over 18,000 deaths, with fears of thousands more missing or inaccessible beneath the debris.

Almost 50 percent of homes were destroyed within one month of fighting
Dardari noted that the extent of destruction in Gaza during this short period has been unprecedented since World War II. He added that 45 to 50 percent of the total number of homes were destroyed within one month of fighting, describing the situation as unparalleled. Drawing a comparison with Syria, he stated that Syria took five years of conflict to reach a level of destruction equivalent to what Gaza experienced in one month.

Dardari, an expert in reconstruction in conflict zones, explained that his team is already in communication with development funds and multilateral financial institutions regarding post-war reconstruction scenarios in Gaza. He emphasized that these efforts have commenced without waiting for the battles to conclude.