Gregory Daco, chief economist at EY-Parthenon, Ernst & Young’s global strategy consulting arm, told the New York Times that the Israel-Hamas conflict may cost the global economy $2 trillion.
According to a prominent Ernst & Young economist cited by the New York Times (NYT) on Wednesday, if the confrontation between Hamas and Israel intensifies, the world economy may be destined for a severe blow.
In the “worst-case scenario,” Gregory Daco, chief economist at EY-Parthenon, Ernst & Young’s global strategy consulting arm, told the New York Times that expanding military action in the Middle East would have “severe” effects on the global economy, including a moderate recession, a decline in stock prices, and a $2 trillion loss.
The director of the UN’s Human Rights Office in New York, Craig Mokhiber, has resigned, saying that the UN has surrendered to Israel and the US.
Daco anticipated that oil prices would rise from the current $85 to $150 per barrel.
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The globe Trade Organization (WTO) issued a warning last month that if the globe divides into two economic blocs due to the intensifying conflict between Israel and Hamas, the global GDP might eventually decline by 5%. The WTO also downgraded its estimate of global trade growth in 2023 from 1.7% to 0.8%, citing a worsening slowdown in manufacturing.