The International Monetary Fund (IMF) has expressed concerns about the economic impact of the ongoing conflict between Israel and Hamas on neighboring countries. During the Future Investment Initiative (FII) in Riyadh, Saudi Arabia, IMF Managing Director Kristalina Georgieva highlighted the visible effects on countries such as Egypt, Lebanon, and Jordan. She emphasized that the war could have severe consequences for the global economy, particularly if it escalates and involves other nations. Georgieva noted that the uncertainty caused by the conflict could deter tourism and investment, increase insurance costs, and potentially lead to an influx of refugees in countries already dealing with such challenges.

Georgieva's remarks came shortly after the shocking attack by the Palestinian militant group Hamas on Israel, resulting in numerous casualties and hostages. In response, Israel launched extensive air strikes and imposed a blockade on Gaza. The ongoing conflict has already claimed thousands of lives, according to the Hamas-run health ministry. Georgieva warned that the situation in the region has added to the existing global anxiety, further contributing to economic instability.

The annual FII event, known as "Davos in the Desert," has traditionally provided Saudi Arabia with an opportunity to showcase its domestic economic reforms, which are believed to rely on regional stability for success. However, the current conflict between Israel and Hamas has raised concerns about the potential impact on the region's economies and the success of these reforms. The IMF's warning serves as a reminder of the broader implications of the conflict and the need for stability in order to foster economic growth and development in the region.

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