The Israeli war on Gaza left its heavy effects on all aspects of life, including the financial and economic sector. Geopolitical tensions are the real danger to the international economy and its recovery.
The Western alignment behind Israel has raised concerns among countries with emerging economies. There are now questions about Israeli military industries and the extent of the ability to rely on Israeli weapons. This may affect, in the long run, Israel’s ability to complete weapons development programs and export weapons manufactured in Israel, in light of the rise of competing industries in many countries.