The economic losses suffered by Israel and the Gaza Strip, in conjunction with the enormous human and humanitarian losses, are increasing amid concern in global markets

about the risks of the conflict spreading regionally.

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Edited by| Christian Megan

 

Economic section -  CJ journalist

 

World - October,25,2023

 

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The war in Gaza between Hamas and Israel has cost the Israeli economy billions of dollars, and the Gaza Strip is facing an acute humanitarian crisis with the displacement of

hundreds of thousands of its residents to the south, the destruction of homes and shops and the cessation of economic activities.

Both the World Bank and the IMF warned of the risks of events in Gaza, where Ajay Banga, president of the World Bank, said that the war between Israel and Hamas could

deal a "serious" blow to global economic development, while IMF Executive Director Kristalina Georgieva expressed concern about the tragic loss of life in the war between

Israel and Gaza and the destruction and curtailment of economic activity.

Speaking at the Future Investment Initiative Forum in Riyadh on Wednesday, Georgieva said that the ongoing war between Israel and Hamas has begun to negatively affect

the economies of neighboring countries in the region, adding: "We have countries that depend on tourism, and uncertainty is fatal for the flow of tourists.

"Investors will be reluctant to go to that place . The cost of insurance, in the event of transportation of goods, will rise. The risks of having more refugees in countries that are

basically hosting a lot,"he said.

- Israeli Finance Minister Bezalel Smotrich estimated the direct cost of the war on the Gaza Strip at one billion shekels (246 million dollars) per day.

- The Israeli minister said in his statements Wednesday that the budget for 2023-2024 will be amended, because it is no longer appropriate after the war on Gaza.

- Standard & Poor's global agency has revised its forecast for the Israeli economy to"negative".

- "Standard & Poor's" said that Israel's war in Gaza may extend on a wider scale and have a clearer impact on the economy and the security situation in the country.

- The agencies "Moody's" and"Fitch" put the rating of Israel under negative review, which means a possible downgrade.

- In the event of a downgrade of Israel's credit rating, it will be the first time by any of the three major rating agencies, namely "Standard & Poor's Global","Moody's"and "

Fitch".

- The declaration of war by Israel on Gaza and the recall of 360 thousand soldiers from its reserve force led to a near disruption in life in Israel.

- It is estimated that in the first week of the escalation, Israel's economy lost about 1.5 billion dollars.

- According to estimates, Israel's losses may rise to 7 billion dollars within two to three weeks.

- The war also led to the disruption of schools and factories, the suspension of transport and tourism, and several airlines announced the suspension of their flights to Israel.

 - The Israeli Stock Exchange also faced heavy bleeding, and the shekel fell over the weekend to an all-time low against the dollar.

- Due to the current conflict, Israel has lost almost 70 of its food needs, which used to come from the settlements of the Gaza Strip.

- The Central Bank of Israel lowered its economic growth forecast for Israel to 2.3 percent this year, compared to 3 percent in previous forecasts.

- The United Nations conference on trade and Development (UNCTAD) said on Wednesday that the Gaza Strip has witnessed "16 years of declining development and the

destruction of human potential, and the loss of the right to development".

- The UN body said on the occasion of the launch of its annual report on the Palestinian economy that the economic repercussions of the war between Israel and Hamas are

"impossible to determine".

- Israel imposes a complete blockade on Gaza, cutting off water, electricity, fuel and food.

- Intensive Israeli strikes led to complete destruction in Gaza, as about 5,500 residential buildings were completely destroyed, and 77 percent of the residents of the Strip lost

their homes.

- The sector, where more than half of the population lives in poverty, has also been hit by the destruction of infrastructure, universities, schools, businesses and shops.

- Israel canceled the permits of about 19 thousand Palestinian workers from the Gaza Strip who were working in Israel on a daily basis.

It is reported that almost half of the population of the Gaza Strip is unemployed.

- The Gaza electricity network lost about 30 million dollars in the first two weeks of the escalation.

- UNCTAD estimates the amount of assistance required to compensate for what happened in Gaza due to its blockade for many years in billions of dollars.