War Damage Reaches New Heights Amidst Middle East Conflict

World Bank President Ajay Banga estimates that war damage from Israeli strikes on Gaza is at $14-20 billion, with additional destruction in southern Lebanon. The conflict's impact on the global economy is limited, but could escalate if it draws in larger countries.

World Bank President Ajay Banga reported on Tuesday that the estimated damage from Israeli attacks on Gaza currently stands between $14 billion and $20 billion. In addition, the destruction from Israeli bombing in southern Lebanon is expected to inflate the overall regional damage figures.

Speaking at a Reuters NEXT event in Washington, Banga highlighted that the ongoing war has had a relatively minor impact on the global economy so far. However, he warned that a significant escalation of the conflict might involve countries with larger contributions to global economic growth, including major commodity exporters.

Banga expressed his concern over the tragic loss of civilian lives, stating, "The economic repercussions hinge significantly on how far this conflict extends," emphasizing the importance of stability for regional and global economic health.

(With inputs from agencies.)