Israel’s economy saw a sharp decline at the end of 2023 due to the war with Palestinian Hamas militants in Gaza, Reuters reports.
The economy contracted by 19.4% in the fourth quarter, largely due to reduced spending, travel, and investment amid the conflict. Despite this, the economy still saw positive growth for the year as a whole, with a 2% increase compared to the previous year. However, per capita GDP slipped slightly.
The conflict severely impacted private spending, exports, and investment in fixed assets, while government spending surged due to war expenses and compensation. Looking ahead, the economy is expected to grow around 2% in 2024, with a sharp rebound anticipated in 2025, driven by the high-tech sector.
