Bloomberg Reports: Israeli Economy Enters Recession Due to War with Iran
The English section of webangah News Agency, citing Mehr News Agency and Al Mayadeen, reported that Bloomberg examined the economic impact of the war against Iran on Israel.According to Bloomberg, Israel’s Central Bureau of Statistics stated that the country’s gross domestic product (GDP) declined by 3.5 percent on an annual basis.
Israel’s Central Bureau of Statistics acknowledged in a statement that the war with Iran has had its greatest impact on private consumption expenditure and gross fixed capital formation, which fell by 4.1 percent and 12.3 percent respectively.
The report further noted a notable 6.2 percent decrease in business sector GDP, while GDP per capita contracted by 4.4 percent - marking the lowest level recorded in Israel over one year.
Although Israel’s central bank had forecasted growth of 3.3 percent for this year, last week the Ministry of Finance revised its annual growth estimates downward to 3.1 percent.
Bloomberg also highlighted that Israeli military operations in Gaza-which require mobilizing tens of thousands of reserve troops-pose an additional challenge to the economy.
Meanwhile, Ronen Menachem, senior economist at Mizrahi Tefahot Bank Markets, stated that Bank Leumi estimates a GDP shortfall of about four percent compared to pre-war growth trends-a deficit roughly equal to 80 billion shekels.
