IMF: Red Sea shipping activity down 50% due to Gaza war

Shipping in the Red Sea has decreased by 50 per cent due to geopolitical tensions in Gaza, according to Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva’s speech on Sunday.

Georgieva stated that the war in Gaza has destroyed 80 per cent of economic activities in Gaza and has spread to other parts of the Palestinian territories. If there is no political solution, this threat will continue, she also said.

The Arab world has the potential to create a better and more stable future in these challenging conditions. It can address reconstruction needs, build resilience, and create opportunities to meet the demands of growing populations, she added.

The IMF revised its GDP growth forecast for the Middle East and North Africa region downwards to 2.9 per cent this year in its latest regional economic update, which is better than last year but below expectations due to the war in Gaza.