2024-02-20 16:53:51
The armed conflict with the radical Palestinian movement Hamas led to a decrease in Israel’s GDP by 19.4% in annual terms in the fourth quarter of 2023. This was reported by The Times of Israel (TOI) newspaper with reference to a preliminary assessment by the Central Bureau of Statistics of the Middle Eastern country, Day.Az reports with reference to Gazeta.ru.
This figure can be compared to the period of the pandemic, when Israeli GDP fell by almost 30%. In quarterly terms, the Israeli economy contracted by 5.2% in October-December 2023, experts said.
Several factors led to this situation. In particular, the conscription of 300 thousand reservists who had to leave their jobs to serve in the army, as well as the government-sponsored construction of housing for more than 120 thousand citizens evacuated from the Israeli areas bordering the Gaza Strip and Lebanon.
In addition, the restriction on entry into Israel for Palestinian workers from the West Bank (controlled by the Fatah movement, a competitor of Hamas, editor’s note) has worsened the economic situation. The latter circumstance has led to a shortage of personnel in the country.
The situation in the Middle East escalated on October 7, when thousands of armed supporters of the radical Palestinian movement Hamas entered Israel from the Gaza Strip, attacked civilians and kidnapped more than 200 hostages. In response, Israeli Prime Minister Benjamin Netanyahu declared that the country was at war. A ground operation was launched, its goal was the return of the hostages and the complete destruction of Hamas.