Israel-Hamas Conflict Threatens Global Economy, Warns World Bank

The war between Israel and Hamas is expected to have a significant impact on Israel's economy, causing a slowdown in economic growth and a surge in the budget deficit. Many businesses have been forced to pause activity, and the country is increasing spending to support the military, civilians, and businesses during the conflict. The Bank of Israel predicts that economic growth will cool to 2.3% this year and 2.8% in 2024. The shekel has also slumped to an eight-year low, prompting the central bank to allocate $30 billion in foreign exchange to support it. Israel's debt is expected to rise sharply, and tax revenues are expected to decline as consumer spending and activity in various industries decrease. The government is implementing measures to support people and businesses, but the economic outlook remains uncertain.