Israeli Economy on the Brink of Collapse
The Israeli economy is in a constant state of emergency, with experts warning that the billions spent on war could lead to a collapse. Israeli political economist Shir Hever expressed concerns about the lack of recovery signs, declining investments, and an exodus of citizens, painting a bleak future for Israel.
With the economic crisis deepening, the former chief economist at the Israeli Finance Ministry urged immediate government action to prevent a financial crisis. The impact of the deadly assault on Gaza has cost the economy over $67 billion, with a projected increase in war costs, pushing the economy towards recession.
Despite a minimal growth rate and increasing deficits, high inflation and rising prices are causing distress among the population. Businesses are going bankrupt, tourism is at zero, and international investment has plummeted, raising fears for the high-tech sector’s future.
The economy is heavily reliant on international trade and faces challenges from global sanctions, particularly due to the BDS movement. The recent ruling by the International Court of Justice further complicates matters, as Israel struggles to comply with international law.