According to Goldman Sachs analysts, it has been learned that the euro zone economy will face serious problems due to the ongoing war between Israel and the Palestinian radical group Hamas. This was reported by CNBC.
The publication notes that the escalation in the Middle East will slow the low growth rates of the European Union’s GDP, despite the limited increase in energy costs.
Analysts say prolonging the conflict could increase pressure on consumer prices in Europe and accelerate inflation.
According to Ekaterina Vashkinskaya, an analyst at London-based consultancy Europe Economics, the conflict in the Middle East could become a prerequisite for further tightening of monetary policy by the EU Central Bank and increasing interest rates.
Gregory Daco, formerly Chief Economist at EY-Parthenon statedThe escalation of hostilities between Israel and the Palestinian Hamas movement threatens to escalate into a regional conflict and damage the fragile global economy with $2 trillion in losses, he said.
Formerly political scientist named One of the reasons why the Palestinian-Israeli conflict flared up.