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War in Gaza hits Israel’s economy

Tel Aviv, Jul 8 (Prensa Latina) The Bank of Israel (issuing agency) estimated that the national economy will grow 1,5% this year and 4,2% next year, a drop from previous estimates due to the aggression against Gaza.

In lowering the growth outlook from 2,0% and 5,0%, respectively, the agency highlighted the “high level of geopolitical uncertainty and an increased likelihood of an escalation of the ongoing war to multiple fronts.”

The Bank’s Monetary Policy Committee considered the conflict to last until the end of 2024.

Beyond the security effects, the fighting has significant economic consequences, it said in a statement.

There are several risks of a possible acceleration in inflation and a depreciation of the shekel (local currency), the text, which also warned of continued supply constraints, dangers for the real estate market and tourism, as well as on the fiscal situation and oil prices, added.

The conflict broke out in October last year, following an attack by the Islamic Resistance movement (Hamas), which caused more than 1,000 deaths in Israel, after which the army launched a large-scale offensive against the Gaza Strip.

According to official data, more than 38,000 Palestinians have lost their lives since then, to which must be added more than 80,000 wounded and some 10,000 missing, only in that coastal enclave.

As a result, Palestinian Gross Domestic Product fell 35% in the first quarter of 2024, the Central Bureau of Statistics revealed last month.

Official estimates indicate that the Palestinian economy loses $20 million every day as a result of the ongoing aggression.

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