Israel’s war on Gaza took a larger toll on economic growth in the final three months of 2023 than previously thought, according to Reuters.
The economy contracted an annualised 21.0 per cent in the fourth quarter over the third quarter, the Central Bureau of Statistics said today in its third estimate. It followed a 19.4 per cent decline in its preliminary estimate that was revised to a 20.7 per cent contraction last month.
The war has raged since early October and led to steep declines in the fourth quarter in exports (-22.5 per cent), private spending (-26.9 per cent), investment in fixed assets (-67.9 per cent) and imports (-42.4 per cent).
Government spending, though, jumped 83.7 per cent.
On Monday the bureau reported that the annual inflation rate rose to a more than expected 2.7 per cent in March from 2.5 per cent in February.