Arab Countries Impacted by One-Month War with Iran Spend Up to $194 Billion

UN Report Predicts Significant Economic Impact from Ongoing Conflict in Middle East

A recent report by the United Nations Development Programme (UNDP) has estimated that a prolonged conflict in the Middle East could lead to significant economic losses for countries such as Sudan, Yemen, and Lebanon. The report projects a decline in gross domestic product (GDP) of 3.7 to 6 percent, equivalent to a contraction of $120 billion to $194 billion.

According to the report, the conflict is expected to result in the loss of approximately 3.7 million jobs and an additional four million people falling below the poverty line. The war has highlighted the fragility of the Arab economy, according to Abdallah Al Dardari, UN assistant secretary-general and director of the UNDP Regional Bureau for Arab States.

The report notes that tight oil supplies have led to a 4.7 percent increase in Brent crude futures, with prices reaching over $118 per barrel. This has resulted in “risks in strategic maritime corridors” having a ripple effect on inflation, trade flows, and global supply chains.

The impact of the conflict is expected to be particularly severe in Lebanon, where ongoing air strikes and evacuation orders have caused widespread destruction and displacement. The report emphasizes that the fighting must stop as soon as possible to mitigate its negative effects on the global economy.

Source: Al Jazeera