World Bank president Ajay Banga, on Tuesday, cautioned that a much broader escalation of the Israel-Gaza conflict could harm the global economy. During an interview with Reuters NEXT, Banga spoke about the devastating human toll of the war and warned of potential economic consequences if it spreads to larger, resource-rich countries.
” The unreal loss of life – people, children, civilians– is only unjustifiable on all sides”, Banga said. He added that while the war has had a limited impact on the economy, it may get worse, especially if it results in significant economic growth, including big commodity exporters.
According to Banga, who cited the extent of the destruction, damage caused by Israeli strikes in Gaza is likely to amount to between$ 14 billion and$ 20 billion, with bombing in southern Lebanon only adding to the region’s destruction.
The extent of this war’s economic affect depends on how widespread it is. If it becomes provincial, we are talking about considerably larger contributors to the earth market– not only in terms of dollars but also nutrients, metals, and oil”, he said.
In response to the crisis, the World Bank has increased its monetary assistance to the Palestinian Authority, providing$ 300 million —six times its regular contribution. However, Banga noted this aid was still” small” compared to the larger needs. The World Bank has even convened a team of experts from different countries, including Israel, Jordan, and Egypt, to investigate further options.
According to Banga,” we’re going to have to figure out how to have that discussed and debated in people and therefore get the resources for it,” adding that the work may require both personal and public funds.
The United States continues to support Israel by providing additional military aid while European countries push for a peace, according to Banga’s remarks. The fight, which began after Hamas ‘ October harm, has already caused hundreds of casualties on both sides.
Israel’s rude against Hamas followed the violent team’s October 7 assault, which left 1, 200 Israelis dead and around 250 taken prisoner. According to Gaza’s health officials, over 42, 000 Palestinians have been killed in Israeli attacks.
According to the Syrian health ministry, Israeli attacks have killed at least 2, 350 citizens in Lebanon, left almost 11, 000 wounded, and displaced more than 1.2 million individuals.
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