{"id":2179862,"date":"2024-02-19T11:59:05","date_gmt":"2024-02-19T16:59:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/israeli-economy-contracts-since-outbreak-of-war\/"},"modified":"2024-02-19T12:03:36","modified_gmt":"2024-02-19T17:03:36","slug":"israeli-economy-contracts-since-outbreak-of-war","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/israeli-economy-contracts-since-outbreak-of-war\/","title":{"rendered":"Israeli economy shrinks due to war outbreak"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fisraeli-economy-contracts-since-outbreak-of-war%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2179862&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Israel&#8217;s Economy Plunges Amidst War with Hamas<\/h2>\n<p>The Israeli\u200c economy \u200dhas been hit hard following the start of the war with Hamas, \u2064resulting \u2062in the\u2062 country&#8217;s first economic downturn in two\u200d years. According to the Central Bureau of Statistics, Israel&#8217;s gross domestic product plummeted by a staggering 19.4% in the fourth quarter, compared to \u200ba 1.8% \u2063growth in the previous\u200c quarter.<\/p>\n<p>Economists from Goldman Sachs Group Inc., Tadas Gedminas \u200band Kevin\u200c Daly, emphasized the significant \u2063impact \u200dof\u2062 the conflict on\u2062 Israel&#8217;s economy. The surprise attack by Hamas \u200bon\u2063 October 7th caused immense damage, \u200dwith 1,200 civilian casualties and approximately 250 abductions.<\/p>\n<p>The ongoing conflict, as\u200d Israel continues \u2064its invasion\u2063 of \u2062Gaza to dismantle Hamas, is projected to cost the country 255 billion Israeli shekels, equivalent to $70.3\u2062 billion,\u200c by the\u2064 end of 2025. This amounts to \u200ba staggering 13% of Israel&#8217;s GDP.<\/p>\n<h3>Consumer\u2063 Confidence Plummets, Reservists Called Up<\/h3>\n<p>The\u200c Oct. 7 \u2062attack had a severe impact \u2063on consumer confidence and household spending, resulting \u2064in\u2062 a drastic 26.9% decline\u2063 in private\u200c consumption.\u200b Additionally, the\u2064 call-up \u2064of reservists for the war effort has further contributed to the economic\u200b downturn, with\u2064 approximately 8%\u200c of the \u200bworkforce\u200c being withdrawn.<\/p>\n<p>Furthermore, the market \u200bhas been rocked by restrictions similar to those experienced during\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republican-debate-fact-checking-the-2024-gop-presidential-fields-first-showdown\/\" title=\"Fact-checking the 2024 GOP presidential field's first debate.\">pandemic-era lockdowns<\/a>.<\/p>\n<h3>Investment and\u2062 Exports Take a Hit<\/h3>\n<p>Businesses\u2063 have\u200d experienced a significant drop in fixed \u200binvestment,\u200d with a staggering 68% decrease.\u2062 This is primarily due to a halt\u2064 in residential \u2063building and a reduction in Palestinian workers. Exports have also suffered, falling by over 18%.<\/p>\n<p>Despite these challenges, Israel&#8217;s GDP managed to expand by 2% for the full year, aligning with projections from the central bank. \u2063The\u2064 central bank anticipates a \u200dfurther 2%\u2063 expansion in 2024.<\/p>\n<p>For more information, <a href=\"link\">click here to read more from The Washington Examiner<\/a>.<\/p>\n<p> <\/p>\n<h2> What are the main sectors of Israel&#8217;s economy that have been adversely affected by the ongoing conflict with Hamas?<\/h2>\n<p><span>  Adversely affected \u200bby the ongoing conflict with\u2062 Hamas, leading to a substantial plunge. This\u2064 article aims\u2062 to \u200dshed \u2062light on\u200b the current situation and its \u2063potential consequences for Israel&#8217;s economy.<\/p>\n<p>The conflict between Israel and Hamas has\u2063 been ongoing for years, characterized \u2063by intermittent clashes and ceasefires. \u2063However, the recent escalation in violence has had a more significant \u200cimpact on Israel&#8217;s economy, \u2062resulting in\u2064 a \u2064sharp decline in various sectors.<\/p>\n<p>One of the direct consequences is a\u2064 decline in tourism, which has traditionally been\u2064 a significant\u2063 contributor to Israel&#8217;s GDP. The\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/marthas-vineyard-resident-blogs-about-hamas\/\" title=\"Martha's Vineyard local shares thoughts on Hamas through blogging.\">continuous rocket attacks<\/a> and the resulting instability have deterred tourists from visiting the \u2062country. Many countries have <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mexican-president-says-mexico-safer-than-us\/\" title=\"Mexican president says Mexico safer than US\">issued travel warnings<\/a>, urging \u200dtheir citizens to avoid or reconsider travel to Israel.\u2064 As a result, \u200bhotels, restaurants,\u2062 and tourist attractions are facing a significant decrease in\u2062 business, causing a considerable blow to the tourism industry.<\/p>\n<p>Furthermore, the manufacturing\u200b and export sectors\u2062 have also been adversely affected. With the ongoing conflict, many factories and \u200dproduction facilities\u2064 have been \u200cforced to halt operations temporarily or indefinitely due \u200dto safety concerns. Moreover, transportation disruptions, including \u200bclosed borders and damaged road \u200dinfrastructure,\u2064 have hindered the distribution\u200b of goods both domestically and internationally. These disruptions\u200b have led to a significant decline in exports, placing a strain on Israel&#8217;s economy, which heavily relies on trade.<\/p>\n<p>Additionally, the\u2064 ongoing conflict has \u2064negatively impacted investments in Israel.\u200c Uncertainty and the perceived risk associated with\u2063 the conflict have \u200cmade \u200cforeign investors wary, leading to \u2062a \u2064decrease in foreign direct investment (FDI). This decline in \u2063investment not only affects the economic growth of the country but \u2062also slows down innovation and technological advancements \u200bthat \u2063typically accompany foreign investments.<\/p>\n<p>Furthermore, the financial\u200b sector \u2064has not been immune to\u2064 the consequences\u2062 of the conflict. The\u200d Tel Aviv Stock\u200d Exchange, Israel&#8217;s\u2062 main stock exchange, has witnessed a significant downturn. The uncertainty and\u200c market volatility resulting from the conflict have led to a \u200ddecrease in investor confidence, resulting in a sell-off of stocks and a general downturn\u200b in the market. This situation has negative implications\u200c for both \u200clocal businesses and investors, as stock prices \u2062plummet and portfolios face losses.<\/p>\n<p>In response to the economic challenges \u200cfaced\u2062 during the conflict, the \u200cIsraeli government has implemented \u200bmeasures to mitigate the impact. These <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-development-banks-under-pressure-to-compensate-harmed-communities\/\" title=\"Analysis-Development banks under pressure to compensate harmed communities\">include financial support<\/a> for affected businesses, waivers for taxes and fees, as well as providing assistance \u200dto affected workers. However, these measures can only provide temporary relief\u2062 and may not \u200cfully\u200d address the structural hardships faced by \u2062the economy.<\/p>\n<p>It is essential\u2064 to recognize that\u2063 the impact\u200b of the \u200dconflict on the Israeli economy goes beyond immediate financial figures. The \u2062ongoing\u2062 instability and violence hinder <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dia-china-capable-of-mounting-nuclear-weapons-to-planes-to-dominate-northeastern-western-africa\/\" title=\"DIA: China capable of mounting nuclear weapons to planes to dominate northeastern, western Africa\">long-term development<\/a>, leading\u200b to \u200csocial and economic repercussions that will take \u2062time to recover from. The loss of lives and destruction of infrastructure further exacerbate \u200cthe \u200cchallenges faced by the\u200c country.<\/p>\n<p>As the conflict continues, \u200bit is crucial for both sides to\u2063 prioritize a peaceful resolution, as this will provide a\u200b foundation for stability and economic recovery. International efforts \u200bshould be intensified to mediate and facilitate dialogue between Israel \u200dand Hamas, leading\u2062 to a lasting ceasefire. A peaceful resolution \u2063will be the key to rebuilding the economy and allowing \u200dbusinesses,\u2064 tourism, \u200cand\u200c investments to thrive once again.<\/p>\n<p>In conclusion, the ongoing conflict with Hamas\u2064 has caused a significant decline in Israel&#8217;s economy, impacting various sectors like tourism, manufacturing, exports, and investments. The consequences go beyond immediate financial losses, \u200daffecting the country&#8217;s long-term development. Efforts to achieve a\u200d peaceful \u200cresolution are crucial to ensure stability and promote economic recovery.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Israel&#8217;s economy experienced a significant decline following the conflict with Hamas, marking its first downturn in two years. The country&#8217;s gross domestic product plummeted by 19.4% in the fourth quarter, as reported by the Central Bureau of Statistics. This contrasts with a growth rate of 1.8% previously<\/p>\n","protected":false},"author":2666,"featured_media":2179863,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24050522191655-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2179862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24050522191655-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2179862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2666"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2179862"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2179862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2179863"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2179862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2179862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2179862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}