The Gaza war deepens Israel's budget deficit in 2024. Israel plans to borrow $60 billion this year, freeze government employment, and increase taxes.
The economy contracted by 19.4% annually in the last quarter of last year, reflecting the losses of the war, ending 2023 with growth of 2%. Yaron expressed his concern that the construction sector would be affected by the shortage of workers, after Palestinian workers were prevented from working in Israel. The main factor in restoring the health of the Israeli economy is the demobilization of reserve soldiers, he said.