"Israeli Economy Contracts by 19.4% Amid Gaza War"

Israel's economy shrank by 19% on an annualised basis in the fourth quarter of 2023, directly affected by the conflict with Hamas in Gaza, leading to a 5% decline between October and December. The war sharply curtailed spending, travel, and investment, with private spending dropping by 26.3%, exports falling by 18.3%, and a 67.8% slide in investment in fixed assets. Despite the sharp drop in GDP, Israel's economy grew by 2% for the full year, but it had been expected to expand by 3.5% before the attacks. The conflict has also affected trade, with Houthi rebels targeting cargo ships on the Red Sea, leading to a significant reduction in Suez Canal revenue.