Mohammed El-Erian, Allianz’s chief economic advisor, said the global economy could face financial contagion if the military conflict between Israel and Palestinian radical group Hamas in the Middle East escalates. This was reported by CNBC.
According to him, since the beginning of the upswing in the region, such risks have grown; The longer the conflict continues, the greater the negative impact will be on the global economy. In the worst-case scenario, the decline in global GDP growth will accelerate and inflation will rise.
El-Erian added that the global economy would face the risk of broader fragmentation of markets in the event of geopolitical tensions in the Middle East.
Before that, it was known that the World Trade Organization expressed concern about the development of the world economy against the backdrop of deglobalization processes.
Formerly Central Bank of the Russian Federation raised key rate up to 15%.