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Military Escalation in the Middle East: Economic and Social Implications for the Arab States region
New estimates by the United Nations Development Programme (UNDP) suggest the military escalation in the Middle East, now into its fifth week, may cost economies in the region from 3.7 to 6.0 percent of their collective Gross Domestic Product (GDP). This represents a staggering loss of US$120-194 billion and exceeds the cumulative regional GDP growth achieved in 2025. Coupled with an estimated rise in unemployment of up to 4 percentage points or 3.6 million jobs lost—more than the total jobs created in the region in 2025, these reversals will push up to 4 million people into poverty. The assessment — “Military Escalation in the Middle East: Economic and Social Implications for the Arab States region” — exposes the concerning reality of structural vulnerabilities characteristic to the region, which enable a short‑lived military escalation to generate profound and widespread socio‑economic impacts that may persist over a long-term.
More: https://www.undp.org/arab-states/publications/military-escalation-middle-east-economic-and-social-implications-arab-states-region-assessment
