Israeli economy in crisis: Rapid shift to a wartime economy

Everything indicates that the Israeli economy, the third-largest in the region after Saudi Arabia and Turkey, is rapidly turning into a wartime economy.

In the latest updates:

Each day of the war costs Israel directly $246 million, according to the Israeli Ministry of Finance, covering the expenses of the war, compensation for damages, and the decline in state revenues, which has led to the Israeli Finance Minister announcing the need to adjust the budget for the coming year.

According to Bloomberg, the Israeli currency is now among the worst performers globally.

Furthermore, Standard & Poor's has revised its outlook for Israel's economy to negative, while Fitch and Moody's have put Israel under surveillance for possible downgrades. This is an unprecedented event in the country's history.

Additionally, more than 300,000 reserve soldiers have been called up, representing around 10 to 15% of the workforce. Many of these are young people working in the technology sector, which is considered the economy's engine.

However, according to the Israeli Central Bank, most markets and malls have turned into ghost towns, and consumption has significantly declined.

In addition, this deterioration comes at a time when Israel's economy was already struggling due to massive protests against the government of Benjamin Netanyahu, leading to capital outflows, according to analysts.

According to analysts, the results of the October 7th war are expected to have serious repercussions, including decreased investments, loss of confidence, and damage to the country's reputation.

Therefore, this will push the economy into an uncertain future.