- The conflict between Israel and Hamas has led to significant economic challenges for Israel.
- JPMorgan Chase & Co. predicts an 11% shrinkage in Israel’s economy during the last quarter of this year.
- The conflict has resulted in a decline in Israeli assets and a weakened shekel.
- While JPMorgan maintains an overall positive outlook for Israel’s gross domestic product, projecting growth at 2.5% this year and 2% in 2024
- Israel’s government has mobilized an unprecedented 350,000 reservists, constituting over 5% of the country’s labour force. Despite the economic turmoil, Israel’s central bank opted to maintain its main interest rate at 4.75%