Israel-Hamas Peace Deal Sparks Economic Recovery in Gaza and Beyond

The recent Israel-Hamas peace deal halts armed conflict in Gaza and offers a chance for economic recovery in the region. The IMF, represented by Deputy Chief Economist Petya Koeva-Brooks, is poised to support economic rejuvenation in Gaza and affected neighboring economies, including Egypt and Jordan.

The recent peace agreement between Israel and Hamas marks the end of two years of armed conflict in Gaza, unlocking the potential for a sustained economic recovery in the region. The International Monetary Fund's Deputy Chief Economist, Petya Koeva-Brooks, highlighted this development as a significant opportunity.

Koeva-Brooks emphasized the IMF's readiness to collaborate with the global community in aiding the rehabilitation of Gaza and other regional economies, such as Egypt and Jordan, which have suffered the impact of the prolonged conflict. Notably, Egypt's economic forecast has been revised upward, with projections indicating a 4.3% real GDP growth in 2025 and 4.5% in 2026, driven by tourism revival and enhancements in non-oil manufacturing.

Although Egypt grapples with decreased Suez Canal revenues due to the conflict, recovery is anticipated by 2026, with mining activities expected to follow a similar upward trend, bolstering the region's economic prospects.

(With inputs from agencies.)