The managing director of the International Monetary Fund stated at a Saudi investor gathering on Wednesday that the fierce conflict between Israel and Hamas is already having a negative impact on the economies of neighboring nations.
“You look at the neighbouring countries Egypt, Lebanon, Jordan there the channels of impact are already visible,” Kristalina Georgieva said at the Future Investment Initiative (FII) in the Saudi capital Riyadh.
According to Israeli officials, the Palestinian militant organization Hamas carried out a surprise attack on Israel on October 7 that resulted in the deaths of over 1,400 people and the kidnapping of 222 hostages.
In response, Israel launched devastating airstrikes and imposed a nearly complete blockade of Gaza’s land, sea, and airspace. According to the health ministry administered by Hamas, 5,791 people have died in the conflict so far in Gaza.
Georgieva’s remarks came the day after powerful Wall Street figures warned that the war may severely damage the world economy, particularly if it involved additional nations.
“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,” she said, describing the potential economic cost for countries in the region before ticking specific risks.
“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.”
The FII’s annual “Davos in the Desert” has always given Saudi Arabia an opportunity to showcase its internal economic reforms, the success of which, according to Saudi officials, depends on regional peace.
