Jerusalem Post: The renewal of the war on Gaza doubles the crisis of confidence in the economy of Israel – the seventh day

An economic analysis emphasized critical challenges facing the Israeli economy, in light of the resumption of the war against Gaza, pointing to a crisis of confidence in the economy and its inability to withstand in the face of crises dispersed the workforce and its energy is dispersed due to the war, unlike the missile rise of the debt and the flight of international multinationals due to concerns about democracy in the country and the implications of the war.

The analysis, published by the Hebrew newspaper “Jerusalem Post”, indicates that Israel is moving forward to quickly enter into another economic storm, using a ship that was damaged by any damage from the storm that preceded it, and is drifting towards water quickly.

It also confirms that one of the greatest challenges to the Israeli economy is the alert that the leaders of high -tech institutions launched that investors lose confidence in the country’s economy if important changes occur in the regime, pointing to the dispute over the judicial system and renewed the war on Gaza.

The newspaper continued, renewed the war on Gaza and the continuation of political changes, which is subjected to great pressure on a system that is already submerged, and if the damage reaches a great end, the Israeli economy will not be able to recover and return quickly or easily.

The analysis affirmed the exposure of the Israeli economy to many storms in the past years, foremost of which is the Korona virus and the complete closure of the economy, and the consequences of the absence of tourists from the country, and left stores and educational institutions empty of their offers, in addition to the confusion that affected many industries to formulate how to continue production safely.

The threats continued, including reducing the credit evaluation of Israel, the acceleration of Israeli minds, given the migration of doctors and technological specialists, and the departure of many multinationals, all of which are crowded due to the dominance of concerns about the situation of Israel as a democratic country.

The analysis refers to the different point in the strong storms that the Israeli economy was exposed to, highlighting the disrespectful impact of the war on Gaza, where factories and industrial areas closed, and a large percentage of the Israel population has been sent to recruitment as reserve forces, and left tens of thousands living displaced and in need of many varieties of support and assistance.

The newspaper says that these were some of the economic challenges that faced the economy due to the war, which left the government to be forced to re -prepare a 2024 budget project many times, raised the ceiling of the debt, and the economy witnessed a reduction in credit evaluation from all major global evaluation agencies.

“After the ceasefire and the passage of several months of calm in the north and Gaza, Israel again returned to the fighting in Gaza, where it began with air strikes and was followed by the expansion of land operations in the Strip.”

The government’s movements to dismiss Ronin Bar, head of the “Shin Bet” (the Israeli Security Agency) and the government’s judicial advisor, Jali Bahraf-Mayara, which he looked at as a challenge to judicial reforms, sparked a wave of major protests, as thousands of Jerusalem gathered daily for about a week.

And between the resumption of the war in Gaza on the one hand and the challenges of judicial reforms on the other side .. The newspaper believes that any of these factors is a major challenge to the economy in itself, but their meeting together represents a real storm that ravages the Israeli economy, stressing that the situation is more dangerous now when we consider that the country’s economy will enter the storm and is in a real weakness.

Israel’s credit evaluation is low; Its workforce is dispersed and its energy is exhausted and reproductive for more than a year and a half in the service of the reserve army; Many small companies are closed; Thousands suffered from temporarily or extending their jobs; And tens of thousands need intensive support from the government. Beyond that, the standard of living is escalating and jumping sharply, especially after the government adopted tax measures to confront the repercussions of the war.

The “Jerusalem Post” says that organizations on the ground confirmed that more and more middle classes suffer to complete the expenditures of the month, and expected that these numbers are constantly increasing.

The increase in the ceiling of the debt, and the reduction of the country’s credit evaluation caused an increase in the benefits paid on debts and its service.
In light of the current level of debt, which the state will pay loaded with the benefits of it, which will be enlarged by dependency, it is expected that the cost of paying debts and its benefits will become astronomical.

The government offered the draft budget (which is expected to be approved in the Knesset today), and “Jerusalem Post” explained that this budget was subjected to widespread criticism of its failure, as it prevailed in political and sectoral interests at the expense of national interests.

The growth of the Israeli economy did not exceed 0.9 % last year 2024, and the departments expected to recover in 2025, but that type of growth could be completely crushed by the return of the war on Gaza and judicial reform.

The Israeli economy cannot have flexibility indefinitely; Also, the workforce cannot continue its productivity and, at the same time, the majority of the Israeli army forces are currently in service.
Last January, the Israeli Ministry of Finance announced that Israel had incurred up to 125 billion shekels (34.09 billion dollars) since the war on Gaza began on October 7, 2023.

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