Economy is Worsening Due to the Aggression on Gaza War: Israeli Experts

By Gamal Khattab February 11, 2024 1576

 

 

The Economic Challenges

 Israel's credit rating has been downgraded for the first time ever, and that's not good news. It means that the country's economy is facing some big problems. At a recent conference called the Economic Outlook 2024, experts and leaders talked about how worried they are about the situation.

Financial Responsibility

One of the main concerns is that the war is costing Israel a lot of money. Experts say that the government needs to be financially responsible and make smart decisions to protect the economy. They want to make sure that the country stays stable even with all the challenges it's facing.

A Shift in Priorities

A writer named Shoshana Tita wrote an article in The Jerusalem Post, a newspaper in Israel, expressing her concern about the war's impact on the economy. She thinks that the government needs to change its priorities. In the past, Israel's economy has been doing well, but now they need to focus on different things because of the war.

Learning from the Past

The writer also talks about a time in the past when Israel faced a similar situation. After a war in 1973, the country went through a tough time economically. The writer says that they need to learn from that experience and not let it happen again.

A New Deal

The writer suggests something called a "New Deal," which is similar to something that happened in the United States a long time ago. It's a plan to help Israel with its military, economic, and social expenses. The writer thinks that if Europe and the United States help out, it will benefit Israel in the long run.

The Cost of War

War is expensive, and the writer points out some of the financial pressures that Israel is facing. For example, each missile used to defend against attacks costs a lot of money - between $50,000 and $70,000! So far, Israel has spent a lot of money on the war, and it could reach even higher amounts in the future.

Financial Responsibility

The CEO of Bank Hapoalim, Dov Kotler, says that the government needs to be responsible with its money. They need to find a way to pay for the war and also for rebuilding areas that have been damaged. It's a big challenge, but it's important to figure it out.

Difficult Choices

Eyal Ben Simon, the CEO of Phoenix Holdings, warns that Israel is in a weak economic position right now because of some bad choices in the past. He says that they need to make some tough decisions to fix the problems they're facing.