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War in the Gaza Strip: The conflict led to a drop in Israel’s GDP at the end of 2023

Burdened by the war in the Gaza Strip. Israel’s gross domestic product (GDP) fell 19.4% in the final quarter of 2023 from the previous quarter, according to official data released on Monday. This is the worst quarter in terms of GDP per capita for the Israeli economy since the start of 2020, marked by the Covid-19 pandemic.

Israel’s GDP grew 2% in 2023, according to the Central Bureau of Statistics, while Israel’s central bank forecast it at 2.3% at the end of October, less than a month after the Hamas attack that sparked the war in the Gaza Strip. .

In the latest quarter, exports fell 18.3% and imports fell 42.4%, due in part to canceled flights to Israel and attacks on the Red Sea by Yemen’s Houthi rebels to denounce Israel’s war in Gaza, which has disrupted global sea ​​trade.

Collapse of tourism

The impact of the war on the Israeli economy was reflected not only in the fall of the GIB, but also in severe labor shortages and the collapse of the traditionally booming tourism industry.

In the days following October 7, the Israeli military recalled more than 300,000 reservists, and the government banned entry into the country of at least 160,000 Palestinian workers, who make up a significant portion of the country’s labor force, in construction and agriculture.

The Israeli offensive in Gaza has so far killed more than 29,000 people in the Palestinian territory, the vast majority of them civilians, according to the latest Hamas Health Ministry report. Israel has threatened to continue its offensive against Hamas during Ramadan if hostages are not released by then, including in the Rafah region in the south, where nearly 1.5 million Palestinian civilians are concentrated.

Source: Le Parisien

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