Summary
A UN report states that the US-Israel conflict with Iran heavily affects Arab countries, causing significant economic loss and an increase in poverty. The war led to projected GDP declines in the region and job losses, impacting countries already vulnerable to economic shocks.
Key Facts
- The conflict has led to an estimated decline in GDP for Arab countries by 3.7 to 6 percent.
- This GDP decline translates to an economic contraction of $120 billion to $194 billion.
- The war is expected to cause 3.7 million job losses in the region.
- About four million more people in the region may fall into poverty due to the conflict.
- The conflict has increased oil prices to over $118 per barrel amid tighter supplies.
- Strategic maritime risks impact inflation, trade, and supply chains globally.
- Lebanon has been particularly affected, with significant infrastructure damage following its involvement in the war.
- Regions like the Levant, Sudan, and Yemen are more vulnerable and at greater risk of welfare losses.
