In the ongoing conflict environment surrounding Israel, analysts suggest the economy could shrink by around 11 percent compared with the same period in 2022. This assessment draws on Bloomberg’s reports that cite JPMorgan Chase & Co estimates.
Data from Israel’s Central Bureau of Statistics show that in the fourth quarter of 2022 the economy expanded at an annual rate of 5.8 percent, while the full year ended with a 6.5 percent rise. Analysts from JPMorgan Chase project that Israel’s gross domestic product will advance about 2.5 percent in 2023 and roughly 2 percent in 2024.
Yet measuring the war’s effect on Israel’s economy remains challenging due to uncertain scope and gaps in data. Industry experts note that past conflicts have had limited negative impact on the Israeli economy, whereas the current war has more directly undermined security and business confidence.
On October 7, Hamas announced a large-scale assault with thousands of rockets fired toward Israel and the initiation of Operation Al-Aqsa Flood. Following the invasion by militants, substantial military equipment was seized and over one hundred hostages were reported captured. In response, the Israeli Air Force conducted extensive strikes against targets in the Gaza Strip. Israel’s National Security Council also decided to suspend the delivery of water, food, electricity, and fuel to the affected area to discourage continued hostilities.
Earlier reports from Russia suggested possible timelines for the end of the Israel-Hamas conflict, with many variables still in play and no clear consensus on when hostilities might ease or escalate further.