"Israel's Economy Contracts 20% Due to War in Gaza"

Israel's economy contracted by an annualized 19.4% in the final quarter of 2023, worse than expected, due to the impact of the Hamas war, which led to business disruptions, evacuations, and military call-ups. Despite the war's toll, the economy still expanded by 2% for the full year, with the central bank and finance ministry projecting growth of 2% and 1.6% for 2024, respectively. The war also caused a significant economic downturn in Palestinian territories, particularly in Gaza. The central bank has responded with measures to support the local currency, and signs of stabilization have emerged, but consumer confidence remains below pre-war levels.