Israel’s economy shrinks sharply on impact of war
Israel’s GDP shrunk by almost one-fifth in the final quarter of 2023, compared to the three months prior, according to official figures published on Monday.
The 19.4 percent fall in the final quarter was attributed to the scale of the ongoing Gaza war’s effect on the high-tech regime’s economy.
Overall, Israel’s GDP grew by 2.0 percent in 2023, short of the 2.3 percent projection made by the Bank of Israel after the war’s outbreak in October, the Central Bureau of Statistics figures showed, according to AFP.
It was the single worst quarter for the Israeli economy in terms of GDP per capita since the opening quarter of the Covid pandemic in early 2020.
Exports fell by 18.3 percent and imports by 42.4 percent, fueled in part by airlines terminating flights and international shipping avoiding the Red Sea after Yemen began attacking ships over Israel’s war on Palestinians in Gaza.
The regime has seen massive labor shortages and the collapse of the tourism industry since the outbreak of war on October 7.
Israel’s onslaught on Gaza has killed over 29,000 people, mostly women and children.
The chairman of the Chief of Staff of the Iranian Armed Forces said on Monday that the Israeli regime has undoubtedly suffered an “unprecedented and irreparable” defeat in its war against the oppressed people of Palestine.
“The Zionists seek to make up for their defeat by killing defenseless [Palestinian] people, which is definitely not possible,” Major General Mohammad Baqeri said.
The regime is preparing to launch a ground offensive in the Gaza city of Rafah where around 1.5 million Palestinians are sheltering. The European Union on Monday warned Israel against launching an offensive in Rafah that ministers said would create a disaster for the refugees crammed into the city on the southern edge of Gaza.