IMF Chief Warns Middle East Conflict Could Hurt Regional Economies

The Israel-Hamas war will likely hurt economies in Egypt, Lebanon, Jordan and other Middle East countries, per IMF's Kristalina Georgieva. It could reduce tourism and increase costs of moving goods.

While financial markets remain calm for now, the UN warned of "tens of billions" in damage to the Palestinian economy. Gaza GDP is near its lowest since 1994.

The war is happening when growth is slowing, rates are high, debt is up - "buckle up" for higher rates to stay longer, Georgieva says.

Inflation will stay above 2% likely through 2024 or even 2025 before rates can fall from current highs but still be positive.

Even as risks rise in the region, top Wall Street names attended Saudi's "Davos in the Desert" conference.