ALBAWABA – The prospects of the genocide in Gaza spiralling into a full-blown regional war poses the biggest risk to the global economy, among other things, World Bank President Ajay Banga said on Tuesday.
The war could deal a “serious” blow to the global economy, Banga told Saudi Arabia’s flagship investment conference in Riyadh, the Future Investment Initiative.
"There is so much going on in the world and geopolitics in the wars that you're seeing,” he noted. Especially with what just happened recently in the Israeli-occupied territories of Palestine and Gaza.
“At the end of the day, when you put all this together, I think the impact on economic development is even more serious," Banga underlined.
“I think we’re at a very serious juncture,” he warned.
It is estimated that the ongoing genocide in Gaza has cost the Israeli authorities billions on top of more than $74 billions incurred in damages and expenses thus far.
Israeli Genocide in Gaza will incur unfathomable costs as preparation expenses mount ahead of invasion - AFP
More so, in addition to the Israeli deficit widening in 2024, the cost of arming the current force of reserve troops recalled in preparation for the invasion of Gaza may exceed one trillion dollars, drawing more support from the world’s Group of 20 economies.
Meanwhile, a regional war can easily disrupt oil supplies from the crude-rich Middle East region, putting further pressure on prices and on economies as a whole.
The ongoing genocide in Gaza and fears of it escalating into a full-blown war has already driven oil prices back to the $90+ range and is adding to inflation woes globally.
Gold is fluctuating but is already up on the month while most stocks worldwide are fluctuating, with many major indexes down for days, especially after the Tel Aviv stock exchange index lost $20 billion by October 8.
