Israel faces economic uncertainty due to recent military offensives impacting the economy. The OECD warned of potential disruptions, with economic growth already falling from 6.5% to 1.1% in 2024 due to conflicts. Workforce changes, like reduced foreign labor, pose challenges in sectors like construction and agriculture.
Intensification of mechanization
The departure of Palestinian workers and migrant laborers, alongside challenges in agriculture, have led to economic strain. Israeli economist Nadine Baudot-Trajtenberg highlighted rising housing prices and inflation. Mechanization efforts aim to address labor shortages in key sectors.
The impact of ongoing conflicts on the economy will shape Israel’s financial future, with the need for strategic adjustments to mitigate economic setbacks and maintain stability in the face of adversity.