Israel's Economy Shrinks by Nearly 20% Amid Gaza War

Israel's gross domestic product contracted nearly 20% in the fourth quarter of 2023, a larger decline than expected, primarily due to the toll of the country's war against Hamas in Gaza. The economic data revealed significant contractions in private sector consumption and investment, particularly in real estate, as well as disruptions in the labor force due to military mobilization. Despite a surge in public sector consumption and a positive net trade contribution, the GDP contraction highlights the extensive impact of the conflict, with a slow recovery anticipated for 2024.