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Israeli economy faces 5% contraction due to wars
Israel's economy is set to shrink by 5% over the next few years, mainly because of the continuing military operations in Gaza and Iran.
Since the October 7 Hamas attack, many reservists have been called up for duty, which has pulled people away from their regular jobs and slowed down everyday business.
Economic growth has dropped sharply
Economic growth has dropped sharply—from 6.5% in 2022 to just 0.7% expected in 2024.
With fewer workers and no Gazan labor, business investment has plunged nearly 68%, while defense spending has jumped over 60%.
On top of that, Israel's budget deficit is now above 6%.