Israel’s economy took a significant hit since the outbreak of the war in Gaza against Hamas, contracting by nearly 20% in the final quarter of 2023, according to the country’s Central Bureau of Statistics on Monday.
After Q3 growth of 1.8%, the attack by Hamas on Oct. 7, which incited Israel’s response, resulted in a downturn of 19.4% since, the result of calling up hundreds of thousands reservists and the hit to businesses and the loss of homes.
The war is expected to cost Israel $70.3 billion by the end of 2025, roughly 13% of the country’s gross national product.
“The release highlights the degree to which the Israeli economy has been affected by the conflict, particularly on the private activity side,” Goldman Sachs Group Inc. economists Tadas Gedminas and Kevin Daly said in a report.
Further, consumer confidence fell drastically in the aftermath, with household spending dropping 26.9%. Confidence rebounded toward the end of 2023 but remained far below pre-war levels.
Mark Swanson ✉Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
|
© 2024 Newsmax. All rights reserved.
https://www.newsmax.com/newsfront/israel-economy-contracted/2024/02/19/id/1154204
