The International Monetary Fund lowered its growth forecast for the economies of the Middle East and North Africa from 3.4 to 2.9 percent due to military actions in the region.
The conflict in the Middle East poses a danger to the world economy
On January 11, the chief executive officer of the International Monetary Fund, Kristalina Georgieva, said that the escalation of the conflict in the Middle East could have consequences for the world economy
She stated this at the World Government Summit in Dubai, DW reports.
According to her, the escalation of the conflict in the Middle East may have wider consequences.
This extreme uncertainty adds to the challenges for economies still recovering from earlier shocks. Further expansion of the conflict will increase the economic damage.
Kristalina Georgieva
Head of the IMF
According to a report, the IMF cut its growth forecast for the Middle East and North Africa economy from 3.4 percent to 2.9 percent, saying the region's outlook is extremely uncertain due to a number of risks, such as the spillover of the conflict in Gaza to Israel's neighbors and attacks on ships in the Red Sea.
Moody's lowered Israel's credit rating for the first time
The international rating agency Moody's downgraded Israel's credit rating from A1 to A2. This happened for the first time in the history of the country.
Moody's downgraded Israel's foreign and national currency ratings to A2 from A1. Moody's also downgraded Israel's foreign and local currency senior unsecured ratings to A2 from A1, as well as the shelf foreign currency senior unsecured ratings and the MTN program senior unsecured ratings to A2 from A1. Forecast "Negative".
The main reason for the downgrade was Israel's war with Hamas, as well as the possible political consequences of this war and the resulting blow to Israel's financial system. The duration of the conflict is also a problematic issue, as it is not clear today.
