World Bank warns of “serious” economic damage from Israel-Hamas war

The war between Israel and Hamas could cause harm”serious” to global economic development, the president of the World Bank warned on Tuesday during an investor forum in Saudi Arabia.

After what recently happened in Israel and Gaza “I think the impact on economic development will be even more serious.”said World Bank President Ajay Banga.

“We are facing a very dangerous situation“he added Banga at the annual Future Investment Initiative forum, known as “Davos in the Desert”.

Commandos from the Palestinian Islamist group launched an offensive against Israel on October 7, killing 1,400 people, according to Israeli authorities, and taking more than 220 hostages. In the Israeli reprisals on Gaza there were more than 5,700 deaths.

Innovation and economic transformation, which were the themes of this edition of the forum, were overshadowed by the war.

Larry Fink, CEO of the management giant BlackRock, stated that “If these problems are not resolved, it will likely mean more global terrorism, more insecurity, more fear and less hope.”.

“And when there is less hope, we see contractions in our economies“, he claimed.

Jane Fraser, CEO of CitiI affirm that “It’s hard not to be a little pessimistic”.

More than 6,000 delegates are registered for the three-day event that will include the heads of the world’s big banks and the presidents of South Korea, Kenya and Rwanda, according to organizers.

The war between Israel and Hamas It contrasts with the vision of a prosperous Middle East promoted by Saudi Arabia, which this year resumed relations with Iran and was close to recognizing the State of Israel before the conflict broke out.

Riyadh has condemned violence against civilians in Gaza and said it defends the Palestinian cause.

This war raises fears of an escalation in the Middle East, specifically between Israel and the Lebanese group Hezbollah, an organization supported by Iran and allied with Hamas.