A new UN report reveals the depth of the "economic tsunami" sweeping the Middle East since the outbreak of fighting on February 28. The conclusion is clear: this war not only changes borders, it erases decades of growth.
According to the analysis, Arab economies are expected to lose between $120 billion and $194 billion of GDP. The UN warns that this is a far-reaching social destruction that will lead to a 4% increase in the regional unemployment rate with the loss of 3.6 million jobs. About 4 million more people are expected to be pushed below the poverty line due to the crisis.
Qatar and Kuwait are the hardest hit with a forecast contraction of 14% in output this year. Despite the ability to divert some oil through alternative routes, Saudi Arabia and the Emirates are still expected to suffer a blow of 3% to 5% in output.
Jordan, Lebanon, and Syria, already at a breaking point, are expected to lose more than 5.2% of their output. The UN warns that even if the fire dies down soon, the economic and social damage is already deeply embedded in the infrastructure of the Arab world.
