Israeli economy contracts 20% after war outbreak

Israeli economy contracts 20% after war outbreak

Tel Aviv's economy has suffered one of its worst slumps on record after the war with Hamas paralyzed business, as well as forced people to flee their homes and hundreds of thousands of reservists were called up to the army.

◾️Gross domestic product shrank a 19.4% year-on-year in the final three months of last year;

◾️The shekel weakened slightly on the news and was trading 0.4% down at 3.62 per dollar at 3.53 p.m. in Tel Aviv, heading for its first drop in four days;

◾️Private consumption spending fell almost 27% year-on-year in the fourth quarter of 2023, while fixed investment fell almost 68%;

◾️Public sector consumption expenditure increased by more than 88%;

◾️Exports fell by 18%, and imports by more than 42%;

◾️GDP growth in the third quarter of 2023 was revised down to 1.8% from the original 2.7%.