Wang Ye said that financial news: The conflict continues and the impact is too great. Finally, the Bank of Israel is "unable to bear it" and has announced a reduction in Israel's GDP growth forecast for this year and the next two years.
So what will be the GDP growth rate of Israel in 2023? What about 2024?
On Tuesday (24th), the Bank of Israel lowered its economic growth forecast for the country on Monday due to the risks posed by the escalation of the conflict between Palestine and Israel.
In terms of specific data, the latest forecast from the Bank of Israel suggests that Israel's GDP will only grow by 2.3% in 2023 and 2.8% in 2024, both of which are lower than the previous forecast of 3%.
Of course, it is also expected that Israel will lower its GDP forecast, as the war has put enormous pressure on the country's economic growth.
At the same time, the Bank of Israel also stated that this conflict will mainly hit Israel's economic growth in the fourth quarter of this year
It is worth mentioning that after the Israeli-Palestinian conflict, the Israeli currency, the shekel, fell to its lowest point in 11 years. However, the Bank of Israel announced that it would maintain its benchmark interest rate at 4.75%, which is also the highest level since the end of 2006.
However, the Bank of Israel has also stated that a larger war will further affect its policies.
The Bank of Israel stated:; The interest rate path and the use of other monetary policy tools will be determined based on this purpose and the development of war, as well as data on economic activity and inflation dynamics. We will continue to support market stability, achieve policy goals, and meet economic needs
Finally, when calculating the cost of the war, Israel also raised its budget deficit forecast, which is expected to reach 3.5% of GDP this year and increase to 3.5% by 2024, as the government is planning a large-scale wartime stimulus plan.
What do you think of this? What do you think will happen to the Israeli economy in 2023?