Gaza’s economy shrinks by 80% due to war, according to IMF director

The managing director of the International Monetary Fund (IMF), Kristalina Georgievaconsidered the impact of the war on “horrific” Loopwhose economy “has shrunk by 80% since the start of the war” and by “22% in the West Bank.”

This was stated by Georgieva within the framework of the World Government Summit (WGS), a forum of global political and economic authorities that began this Monday in Dubai, where she noted that tensions in the area have led the IMF to lower “half a point the growth forecast for the region of middle East and North Africa.”

The person responsible for IMF He highlighted, however, that his organization has not yet observed “a global impact” of the conflict.

The risk of regional escalation and current tensions between Yemen’s Houthi militias and USA in the red sea “they cause a bit of anxiety” internationally, since they affect “the Suez Canal and the supply chain”Georgieva explained.

She also warned that the consequences could be greater depending on “the direction the conflict takes,” and said that “as a woman, mother and grandmother,” she prays for “peace, for the people affected and for the safety of all.” ”.

At the international level, the director of the IMF expressed her optimism that “interest rates will fall steadily” during the first half of this year and assured that “the soft landing” of the inflation “is a reality”.

During this week, in the new edition of the WGS, political and economic leaders, including twenty heads of State and Government, will address a broad agenda of topics related to the challenges of the future in various sectors.

According to the organizers, more than 85 international and regional organizations and institutions are also participating, as well as political experts and economic and financial specialists, as well as representatives of multinational companies and governors of banks and financial institutions.

According to the agenda, the participants include, in addition to Georgieva, the secretary general of the Organization of Petroleum Exporting Countries (OPEC)Haitam al Ghais, and the secretary general of the Civil Aviation Organization, Juan Salazar, among others.

Political figures, such as the Turkish president, are also scheduled to intervene. Recep Tayyip Erdoganthe Prime Minister of Iraq, Mohamed Shia al Sudani, or of Egypt, Mustafa Madbuli, to explain their countries’ plans to face economic and political challenges.