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Impact of the Israel-Hamas War on the global economy

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  • Ozili, Peterson K

Abstract

This chapter explores the impact of the Israel-Hamas war on the global economy. The war began on the 7th of October 2023. The war received global attention due to the unexpected nature of attacks on both sides. The study assessed several economic indicators using trend analysis and the Pearson correlation analysis from October 2023 to February 2024. The findings show that there was increased volatility in global financial markets, higher energy prices, decline in revenue from tourism and travels, disruption in trade and global supply chains, increase in the cost of insurance, recession risks, high inflation, rising cost for businesses and delay in business decision making. There is also evidence of spill-over of inflation and GDP shocks to other countries during the war.

Suggested Citation

  • Ozili, Peterson K, 2025. "Impact of the Israel-Hamas War on the global economy," MPRA Paper 123297, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123297
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    References listed on IDEAS

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    1. Chowdhry, Sonali & Felbermayr, Gabriel & Hinz, Julian & Kamin, Katrin & Jacobs, Anna-Katharina & Mahlkow, Hendrik, 2020. "The economic costs of war by other means," Kiel Policy Briefs 147, Kiel Institute for the World Economy.
    2. Izzeldin, Marwan & Muradoğlu, Yaz Gülnur & Pappas, Vasileios & Petropoulou, Athina & Sivaprasad, Sheeja, 2023. "The impact of the Russian-Ukrainian war on global financial markets," International Review of Financial Analysis, Elsevier, vol. 87(C).
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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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