World Bank President Ajay Banga recently stated that the damage caused by Israeli airstrikes on Gaza is likely to be between $14-20 billion, with additional destruction from Israel’s bombing of southern Lebanon further raising the regional toll.
Speaking at an event in Washington, Banga noted that while the war’s overall effect on the global economy has been relatively minor, a significant escalation could involve other nations that are key contributors to global growth, including major commodity exporters.
Banga emphasized the tragic loss of life, especially among civilians, saying, “This unbelievable loss of life – women, children, others – is just unconscionable on all sides.” He also stressed that the economic consequences of the conflict hinge on whether it spreads further.
Meanwhile, the Biden administration has urged Israel to increase the flow of humanitarian aid into Gaza over the next 30 days or risk losing U.S. military funding.
In a letter sent Sunday, U.S. Secretary of State Antony Blinken and Defense Secretary Lloyd Austin warned their Israeli counterparts that changes were needed due to worsening conditions in northern Gaza. The letter, which reiterates U.S. policy on humanitarian aid and arms transfers, came after reports of an Israeli strike on a hospital tent site in central Gaza that killed at least four people.
For Israel to maintain its eligibility for foreign military funding, Blinken and Austin outlined that it must raise the amount of aid entering Gaza to at least 350 trucks per day, implement more humanitarian pauses, and improve security at aid sites. Israel has been given 30 days to comply with these conditions.
