Israel's GDP Growth Slows Amid Cooling Wartime Exports and Investments
Recent economic analysis has revealed that Israel's economic growth has significantly slowed down recently. The reasons for this deceleration lie in the reduction of wartime exports, as well as the overall situation with investments in the country. Data from the Central Bureau of Statistics (CBS) indicates that the gross domestic product (GDP) increased by only 1.7% year-on-year in the second quarter of 2024, which is markedly lower than previous years' figures.
Economic experts attribute this decline to several factors, including the aftermath of the conflict, which has had a considerable impact on the country's economic environment. Political instability and associated risks have significantly reduced consumer and business investments. Many enterprises have temporarily paused their projects, awaiting an improvement in the situation.
It is also worth noting that while export figures in the high-tech sector remain resilient, other sectors such as manufacturing and construction have noticeably suffered. The slowdown in economic activity in these areas affects the entire national economic landscape.
Despite these challenges, the government is taking steps to stimulate the economy by offering various measures aimed at supporting businesses and creating new jobs. Negotiations with international partners to attract investments are also intensifying.
The overall economic forecast for Israel in the coming months remains uncertain, and many questions remain unanswered, requiring further analysis and close attention from both local and international economists.
