Israel's Economy Contracts Amid War with Hamas

The final quarter of 2023 saw a nearly 20% GDP contraction, with early signs of recovery emerging in 2024.

Israel's economy shrank nearly 20% in the final quarter of 2023 due to the ongoing war with Hamas, with significant impacts on consumer spending, real estate investments, and exports.
The war has led to the mobilization of hundreds of thousands of reservists, disrupting the labor market and various sectors including tourism, agriculture, and the high-tech industry.
Despite the economic downturn, there are signs of recovery in early 2024, with a decrease in unemployment and expectations of positive growth.
Moody's downgraded Israel's credit rating due to the war, but Israeli leaders remain optimistic about the economy's resilience and potential for recovery.
The war's duration and intensity pose uncertainties for Israel's economic outlook, with potential long-term effects depending on its continuation.