World Bank President Ajay Banga on Tuesday warned that a significant widening of the Israel-Gaza war could lead to major impacts on the global economy.
Loss Of Civilian Lives “Unconscionable”
He called the steep loss of civilian lives in the region “unconscionable.”
Speaking in a Reuters NEXT Newsmaker interview, Banga
said the war has had a relatively small impact on the global
economy thus far.
Impact Of Widening Of The Conflict
He said that a significant widening of the conflict would draw in other countries that are larger contributors to global growth, including commodity exporters.
“First of all, I think this unbelievable loss of life – women, children, others, civilians, is just unconscionable on
all sides,” Banga said.
Economic Impact Of The War
“The economic impact of this war, on the other hand, depends a great deal on how much this spreads.”
“If it spreads regionally, then it becomes a completely different issue because now you start going into places that are far larger contributors to the world economy, both in terms of dollars, but also in terms of minerals and metals and oil and
the like.”
Exploring Possibility Of A Ceasefire
Some Western countries are pushing for a ceasefire between Israel and Lebanon, as well as in Gaza.
The United States, Israel’s strongest ally, has expressed its
continued support and is sending it an anti-missile system and
troops.
October 7 Attack
Israel launched the offensive against Hamas after the militant group’s October 7 attack on Israel.
According to Israeli tallies, 1,200 people were killed and around 250 taken hostage to Gaza.
Number Of Palestinians Killed
More than 42,000 Palestinians have been killed in the offensive so far, according to Gaza’s health authorities.
Casualties And Displacement In Lebanon
Israeli strikes have also killed at least 2,350 people over the last year in Lebanon and left nearly 11,000 wounded, according to Lebanese health ministry.
Over 1.2 million people have been displaced.
War damage From Israeli Strikes On Gaza
Banga said war damage from Israeli strikes on Gaza is now probably in the $14-20 billion range, and destruction from
Israel’s bombing of southern Lebanon will add to that regional
total.
He said the World Bank had provided $300 million, six times what was normally given, to the Palestinian Authority to help it manage the crisis on the ground.
He said that it was small compared to the “large number” it would ultimately need.
Group Of Experts
The World Bank President said the multilateral development bank had also assembled a group of experts from Jordan, Israel, Palestine, Europe, the U.S. and Egypt to study what short- and longer-term actions it could take if a peace agreement could be reached.
