Israel Finance Ministry Cuts Growth Forecast as War in Gaza Hits Economy

  • GDP growth forecast for this year lowered to 1.1% from 1.9%
  • Israel’s defense spending has soared since Gaza conflict began
Sectors such as Israel's construction, agriculture and tourism have slumped.Photographer: Kobi Wolf/Bloomberg
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Israel’s finance ministry slashed its projection for growth in 2024, underlining the strain the almost year-long war against Hamas has put on the country’s economy.

Gross domestic product is expected to rise 1.1%, according to updated figures on the ministry’s official website on Monday, down from the previous figure of 1.9%. The estimate for 2025 was lowered to 4.4% from 4.6%.