UN Reports $120-$194 Billion Economic Loss in Arab States from Iran War
Key Takeaways
- Arab GDP could decline 3.7% to 6% after one month of war.
- Arab economies could lose about $194 billion.
- About 4 million people in the Arab world could fall into poverty.
Economic Devastation
The UN estimated Arab states will suffer economic losses between $120 billion and $194 billion from one month of war.
“The US-Israel war on Iran and its ripple effect throughout the Middle East have had a devastating impact on Arab countries, with millions expected to slide into poverty, according to the United Nations”
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.
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.
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