Decrease in Credit Card Usage

Last week, Israelis used their credit cards 15.8% less than usual, which is about 1.4 billion shekels ($378.3 million) below the annual average. This information comes from financial technology company Shiva, as reported by the Jerusalem Post.

Impact on Consumer Expenditures

During the ninth week of the war (December 3 to 9), Israeli consumer spending with credit cards amounted to approximately 7.7 billion shekels ($2.1 billion). This is lower than the average weekly spending of 9 billion shekels since the beginning of 2023, according to Shiva data. Compared to the previous week (November 26 to December 2), spending decreased by more than 2.5 billion shekels, resulting in a total decline of 24.8%.

Sectors Affected by the Decline

The hospitality and hotels sector experienced the most significant decline in spending, with a decrease of 71%. Travel agencies saw a decline of 65%, while the entertainment sector experienced a decline of 24%. The grocery and bakery sector also recorded an 18% decline compared to the average weekly spending on credit cards this year.

Reasons for the Decrease

Tali Hollenberg, deputy director of marketing at Shiva, explained that the end of shopping offers in November and the resumption of the war were expected to lead to a decrease in credit card usage.

Economic Impact of the Conflict

The war on Gaza, which began with Operation "Al-Aqsa Flood" by Hamas on October 7, has caused significant losses to the Israeli economy. The Governor of the Bank of Israel, Amir Yaron, estimated that the costs of the war would reach 10% of the country's gross domestic product, equivalent to 52 billion dollars.

Sources: Al Jazeera + Jerusalem Post