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
More Stories
State tennis roundup: Mounds View advances to Class 2A semis, East Ridge falls to Edina
Mounds View won all four singles matches in its Class 2A team state quarterfinal match Tuesday at Baseline Tennis Center...
Man shot by St. Paul officer during manhunt in sex assault case on trial 4 years later
A Dakota County jury is weighing the case of an alleged sexual assault that led to the suspect’s shooting by...
FBI investigating classified document leak
WASHINGTON — The FBI said Tuesday that it is investigating the unauthorized release of classified documents on Israel’s preparation for...
Justin Timberlake moves Halloween show at Xcel Energy Center to February due to illness
Justin Timberlake has postponed his next six concerts, including a concert on Halloween at St. Paul’s Xcel Energy Center. The...
Girls soccer state quarterfinal: Triplett goal paces Eagan past Lakeville North
Tess Triplett got the ball on the left side with a defender in good position. Or, maybe more accurately, defenders....
Wild roll defending champion Florida, 5-1
Before the season started, the Wild answered a lot of questions about starting better than they did last fall, when...