Speaking at an investor conference in Saudi Arabia, Ajay Banga said, “What happened recently in Israel and Gaza, they feel it has a serious impact on economic growth.” They feel that we have reached a very dangerous point. World leaders fear that the current war is going to turn into a wider conflict in the Middle East. This war has shaken Israel’s economy. Because of this war, the Bank of Israel is having to cut its growth forecast.
The President of the World Bank said that geopolitical tension is considered the biggest threat to the world economy. He said that the economic risk is increasing rapidly. This cannot be ignored. He gave an example of America to explain his point. Banga said in Riyadh that America’s 10-year treasury (yield) has crossed 5 percent on Monday. “This is an area we have not seen.”
So far, more than 1400 people, including women and children, have died in the Hamas attack. More than 5 thousand Palestinians lost their lives in these retaliatory attacks.
