Israel's economy has shrunk by nearly 20 percent since the start of the war
Occupying Israel's economy has shrunk by nearly 20 percent since the genocide began in the Gaza Strip. The Bank of Israel predicts that the conflict will cost Israel about $70 billion by the end of 2025.
In the fourth quarter of 2023 , when the genocide against the Palestinians began in the Gaza Strip , Israel's GDP fell by 19.4 percent, which is worse than economists predicted, TRT reports .
The Bank of Israel predicts that the conflict will cost Israel about $70 billion by the end of 2025.
It should be noted that in the last quarter of 2023, consumer spending decreased by 26.9%, economic capital investment by 67.8%, export by 18.3%, import by 42%. At the same time, government spending increased by 88.1 percent, mainly due to military spending and compensation for damaged companies.
It should be noted that earlier Moody's downgraded Israel's credit rating due to increased political risks and deterioration of public finances as a result of the war .
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Occupying Israel is itself taking a heavy toll from its bloody war against civilians, especially women and children, in Gaza. Tourism, aviation, and the labor market are particularly affected.
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Moody's International Credit Rating Agency downgraded Israel's credit rating from A1 to A2 and changed its credit rating outlook to negative. The agency noted that the military conflict and its wider consequences were the main reason for the downgrade, which raises the risk of weakening Israel's executive and legislative institutions and financial strength.
