As tensions escalate and the fear of prolonged conflict looms, economists are predicting a significant downturn in the economy. The ongoing conflict has created an atmosphere of uncertainty, leading to a decrease in consumer and investor confidence. This lack of confidence is expected to result in a sharp contraction in various sectors, including manufacturing, tourism, and international trade.
Furthermore, economists are warning of the potential for substantial government deficits as a result of the conflict. The increased military spending and the need for additional resources to manage the consequences of the conflict are anticipated to burden national budgets. These government deficits can lead to long-term economic challenges, including a rise in national debt, decreased investment in public services, and reduced ability to stimulate economic growth.
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