Israel’s economy slumps in the fourth quarter as war takes a toll
CNN
Israel’s output contracted sharply in the final three months of 2023, as the war with Hamas takes a heavy toll on the economy.
Israel’s output contracted sharply in the final three months of 2023, as the war with Hamas takes a heavy toll on the economy. Gross domestic product (GDP) fell 19.4% on an annualized basis compared with the July-to-September quarter, when it grew, Israel’s Central Bureau of Statistics said Monday in its initial estimate. The contraction is the latest piece of bad economic news for Israel, which has been waging a war in Gaza aimed at destroying Hamas after its October 7 attack on the country. The conflict is expected to cost Israel around 255 billion shekels ($70.3 billion) by the end of 2025, equivalent to around 13% of GDP, according to the Bank of Israel. In November, the central bank cut its forecast for GDP growth this year to 2%, from an estimate of 3% on the eve of the war. And earlier this month, Moody’s delivered Israel’s first ever credit rating downgrade, citing elevated political risk and deteriorating public finances stemming from the war.