Winding Down the Deadliest and Most Destructive Fighting Between Bitter Enemies

©iStock/Yuliia Bukovska

Israel and Hamas agreed to a ceasefire deal to pause the devastating war in the Gaza Strip, the United States and Qatar said Wednesday, January 15, 2025, raising the possibility of winding down the deadliest and most destructive fighting between the bitter enemies.

Key detail:  Israeli Prime Minister Benjamin Netanyahu’s office did not confirm the deal, saying the final details were still being sorted out.

Geoeconomic Fragmentation

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Advanced economies are expected to slow from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024 as policy tightening starts to bite. 

The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent.

Given increasing concerns about geoeconomic fragmentation, part of the report assesses how disruptions to global trade in commodities can affect commodity prices, economic activity, and the green energy transition.  The report does not factor in the recent Israel-Hamas war – the latest Gaza conflict.

Today in Global Small Business: The Conflict Between Israel and Hamas Puts Pressure on the Global Economy

©iStock/Oleksandr Baranov

What's affecting me, my clients, my colleagues and other global small business owners:

• The conflict between Israel and Hamas risks embroiling other Middle East nations and has the potential of fueling another bout of inflationary pressures and even tipping the global economy into a recession.
• Global outlook during turbulent times.
• Some say troubles are coming to the world economy.
• Quote of the week: “The speed of light does not merely transform the world. It becomes the world. Globalization is the speed of light." – Paul Virilio
• China's economic headwinds.
• Confronting inflation and low growth – global economy.