Israel-Hamas conflict may cost global economy $2 trillion – Ernst & Young

The company’s chief economist warns of “severe” consequences if hostilities escalate

The global economy could be doomed to take a major hit if the conflict between Hamas and Israel escalates, the New York Times reported on Wednesday, citing a top economist at Ernst & Young, one of the world’s leading consulting and accounting services firms.

Gregory Daco, chief economist at EY-Parthenon, Ernst & Young’s global strategy consulting arm, told the NYT that in the “worst-case scenario,” the expansion of military action in the Middle East would entail “severe” consequences for the world economy, such as a moderate recession, a plunge in stock prices and a loss of $2 trillion.

Oil prices are likely to rise to $150 per barrel from the current $85, Daco added.

Last month the World Trade Organization (WTO) warned that global GDP could drop 5% in the longer term if the world splits into two trading blocs as a result of the escalating conflict between Israel and Hamas. The WTO also slashed its 2023 forecast for global trade growth to 0.8% from the previously estimated 1.7%, citing a deepening manufacturing slowdown.

Follow LIVE UPDATES for more information

Leave a Reply

Your email address will not be published.

Previous post Mercedes Could have 1,000 Horsepower 4-door Electric Supercar in 2025
Next post Week 8 recap: Chicago Bears fall to 2-6 as Los Angeles Chargers QB Justin Herbert carves them up in a 30-13 loss