Ahmad 
The World Bank has ruled out the impact of regional conflicts on Libya’s economy, given the lack of economic ties between Libya and the conflict zone.
The report, titled “Conflict and Debt in the Middle East and North Africa,” published Monday by the World Bank, states that the Libyan state is part of a group of countries that are assessed to be highly vulnerable to the direct effects of conflicts in the region.
According to the report, the economies of some other countries such as Algeria, the Gulf Cooperation Council countries and Morocco may also show relative stability despite the presence of regional conflicts.
However, the report predicts side effects on these countries such as volatile commodity prices and rising internal tensions if conflicts are not de-escalated.
In contrast, the report predicts that fragile and conflict-affected states in the region, such as Yemen, will suffer some of the effects, albeit indirect, of trade shocks related to the Suez Canal crisis or the possible diversion of international aid, a vital source of financing to address structural deficits in external and fiscal accounts.
In addition, the report notes that neighboring countries, such as Jordan and Egypt, may be subject to greater direct impacts of conflicts, given the close economic and geographical ties with the affected areas.
As for countries with regional ties, a group of countries in the region, including Syria, Iran, Iraq and Lebanon, are exposed to economic risks for geopolitical reasons.
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