Because of the Gaza War, the Israeli economy shrinks by about 20%. The Israeli economy contracted by 19.4% on an annual basis in the fourth quarter of last year.
Israel's economic growth slowed to 2% for the entire year of 2023 compared to 6.5% in 2022. Projections of the Research Division of the Central Bank of Israel estimate that the war on the Gaza Strip will consume, on average, about 3% of the gross domestic product by the end of 2024.