Global Economic Risks Loom Amid Israel-Gaza Conflict

World Bank President Ajay Banga warns that the Israel-Gaza conflict escalation could severely impact the global economy. He stresses the devastating humanitarian toll and potential wider regional involvement. The World Bank has pledged aid and formed an expert group to explore crisis management and peace efforts.

In a stark warning, World Bank President Ajay Banga highlighted the potentially devastating impact on the global economy if the Israel-Gaza conflict were to escalate further. Banga condemned the significant loss of civilian lives as "unconscionable" and emphasized that further regional involvement could have dire economic repercussions.

Banga stated that, while the conflict's current economic impact is limited, a wider spread could affect major contributors to global growth, including key commodity exporters. This underscores the fragility of international economic stability amid escalating tensions in the Middle East.

The World Bank has responded by providing $300 million to the Palestinian Authority—a substantial increase from usual aid levels. Additionally, a multinational expert group has been convened to assess potential short- and long-term strategies if peace can be achieved.

(With inputs from agencies.)