The escalation of the crisis in the Middle East threatens the global economy
"The possibility of escalating the conflict threatens the global economy," said Gabriel Felbermayr, head of the Institute for World Economy (IfW).
According to the expert, in addition to the danger of war, the situation is negatively affected by the threat of increased terrorist activity. "A large-scale terrorist attack in one of the major western cities will have huge economic consequences for the whole world. Therefore, the nervousness on the stock exchanges is justified," he said.
Felbermayr also warned that since Iraq is a potential place for further escalation of the crisis, Germany, and Europe, in the event of further aggravation of the conflict between the US and Iran, will have to prepare for a new wave of refugees, which, in turn, will entail economic problems.
For his part, Volker Treier, head of the foreign trade department of the Federal Association of Chambers of Commerce and Industry of Germany (DIHK), fears that oil prices, which have risen amid the escalation of the conflict in the Middle East, will remain at a high level for a long time. "A mere 5 percent increase from last Thursday will cost the German economy, when calculated for the whole year, at 2 billion euros, and this will reduce purchasing power," he explained.
According to the expert, in addition to the danger of war, the situation is negatively affected by the threat of increased terrorist activity. "A large-scale terrorist attack in one of the major western cities will have huge economic consequences for the whole world. Therefore, the nervousness on the stock exchanges is justified," he said.
Felbermayr also warned that since Iraq is a potential place for further escalation of the crisis, Germany, and Europe, in the event of further aggravation of the conflict between the US and Iran, will have to prepare for a new wave of refugees, which, in turn, will entail economic problems.
For his part, Volker Treier, head of the foreign trade department of the Federal Association of Chambers of Commerce and Industry of Germany (DIHK), fears that oil prices, which have risen amid the escalation of the conflict in the Middle East, will remain at a high level for a long time. "A mere 5 percent increase from last Thursday will cost the German economy, when calculated for the whole year, at 2 billion euros, and this will reduce purchasing power," he explained.
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