Dubai: Gaza, Lebanon and Sudan will take decades to recover from conflicts raging on their soil, International Monetary Fund said after downgrading region’s growth forecast.

Israel’s military actions against Hamas in Gaza and Hezbollah in Lebanon, and Sudan’s civil war would have enduring impacts, IMF said. “Damage caused by these conflicts will leave lasting scars at their epicentres for decades,” global lender said in statement.

IMF has lowered its predicted growth for Middle East and Central Asia to 2.1 percent for 2024, drop of 0.6 percent due to wars and lower oil production.

Depending on conflicts, growth should rise to 4.0 percent next year, according to IMF’s Regional Economic Outlook which was compiled in September. “This year has been challenging with conflicts causing devastating human suffering and lasting economic damage,” Jihad Azour, IMF’s Middle East and Central Asia Department director, told reporters in Dubai.

“Recent escalation in Lebanon has greatly increased uncertainty in whole MENA region.” IMF forecasts for Lebanon, where conflict with Israel has sharply escalated this month, have been suspended.

But “Conservative” estimates show 9.0-10 percent contraction this year, Azour said. “Impact (on Lebanon) will be severe and it will depend how long this conflict will last,” said former Lebanese Finance Minister.

Published in The Daily National Courier, November, 01 2024

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