The neighboring countries of Egypt, Jordan, and Lebanon are dealing with economic downturn. Many potential visitors have cancelled their travel plans as there are concerns regarding escalation and attacks in these areas. These countries have a very heavy reliance on tourism in their economies as it typically makes up 35-50% of their economy.
There is also elevated uncertainty about the conflict which is causing a reduction in consumer and firm confidence, which could continue to drive down spending and investment. Due to the significance not only in the Middle East, but also the global implications this conflict has, it will definitely continue to influence global markets as well as their own domestic economies.
3 comments:
Clearly this is severely impacting all of the Middle East, but I wonder what the effect is on the US and the rest of the world due to the Red Sea's involvement? I believe it is widely used for shipping to the rest of the world and all the war within it I'd assume would affect the supply chain. I wonder what the immediate and long run problems are with this situation for the rest of the world.
I think when discussing this topic, it is very important that Israel has been wrecking havoc on Palestinians and the city of Gaza for decades. The conflict has not "just begun."(https://www.un.org/unispal/about-the-nakba/#:~:text=The%20Nakba%2C%20which%20means%20%E2%80%9Ccatastrophe,ethnic%20and%20multi%2Dcultural%20society) Additionally, you mention Israel and the United States would like to avoid a war, and they are doing as such by committing a genocide. Gazans are suffering at the hands of Israel and Israel has declared
it will not stop (https://www.pbs.org/newshour/world/netanyahu-declares-no-one-can-halt-israels-war-to-crush-hamas-including-international-court). Ultimately, I believe Israel, and the US, are at fault for the economic stresses in the Middle East. The entire region has been systemically ravaged economically by colonial interference for hundreds of years. Israel is creating an unnecessary conflict causing unnecessary economic stress.
It is important to look more closely at potential solutions as we analyze the effects of the Middle East conflicts on the international economy. What diplomatic actions could be done to reduce hostilities and bring economic stability to the region?
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