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Economic Devastation
The UN estimated Arab states will suffer economic losses between $120 billion and $194 billion from one month of war.
“GDP in the region was estimated to decline by approximately 3.7 to 6 percent”
A regional GDP contraction of 3.7 to 6 percent is projected.
3.7 million jobs could be lost and 4 million people could fall into poverty.
The hardest-hit regions are GCC states and the Levant, each losing more than 5.2 percent of GDP.
Poverty and Employment
The crisis is not sustainable given economic interdependencies.
Regional unemployment could rise by up to four percentage points.
The Levant could suffer a five percent increase in poverty, affecting 3.3 million people.
The effect threatens to unravel a fragile region.
Global Ripple Effects
Brent crude surged above $118 per barrel amid the greatest disruption to global energy supply in history.
“Risks in strategic maritime corridors had knock-on effects on inflation, trade flows, and global supply chains”
The Strait of Hormuz closure caused the disruption.
Trade and supply chain disruptions could stoke inflation globally.
The UN projections signaled regional costs would dwarf the human toll.