The gross domestic product (GDP) fell almost 20% since the war began until the end of the year and that had negative effects on Moody’s rating for the country.
As expected, the war in Gaza is seriously damaging Israel’s economy, but the damage is even worse than estimated: sAccording to official figures, economic output shrank sharply towards the end of last year and gross domestic product (GDP) fell by 19.4% annual in the fourth quarter (at which time the war began), although the country’s economy grew 2% throughout 2023.
Let us remember that the war between Israel and Hamas broke out on October 7, 2023, when the radical Islamist group launched an unprecedented attack against the country. After that, an Israeli military campaign on Gaza began.
He consumption and investment in fixed capital goods They are the hardest hit areas, according to official data and analysts who estimated that the annual drop did not exceed 10.5% confessed their surprise in this regard. This was stated publicly by the Bloomberg agency.
These effects, in fact, were reflected in the decision, for the first time, by the credit agency Moody’s to lower Israel’s rating, which meant a severe setback for the country’s international image among world investors.
The agency took this action in early February, citing political and fiscal risks and an increase in the weakness of its institutions due to the war with Hamas. However, the decision was questioned by the prime minister Benjamin Netanyahu, who He noted that his country’s economy “is strong” and assured that the rating will rise again when Israel wins the war.
Let us remember that the president Javier Milei undertook an international tour of Israel, the first destination on the itinerary, which continued for Italy, where he also visited The Vatican. As part of that trip, he met with the Israeli Prime Minister Benjamin Netanyahu and took a tour of Jerusalem.
The Argentine president and the Israeli prime minister spoke about the cooperative relations between both countries in economic, political, military, social and cultural matters, reported the Office of the President.
In fact, his second day of tour in Israel started with a meeting between the head of state and 20 businessmen Israelis at the King David Hotel Jerusalem, before whom he affirmed that, if he continued with the sanitation of the Central bank, could be in a position to lift the exchange rate before the middle of the year.
Source: Ambito
