During a meeting at the Kirya military base in Tel Aviv, Israeli Defense Minister Yoav Gallant discussed the economic impact of the ongoing conflict between Israel and Hamas with Bank of Israel Governor Amir Yaron. Gallant emphasized the importance of achieving a clear victory over Hamas for the future of Israel’s economy.
In response to the economic impact of the war, Israel’s central bank has taken measures to ensure the stability of the economy. These actions include lowering interest rates and selling approximately $30 billion in foreign exchanges to support the shekel, Israel’s currency. Although the value of the shekel initially fell following a mass killing by Hamas, it has since begun to rise.
Israel’s economy has historically proven to be resilient, thanks in part to its heavy reliance on the tech sector. Tech accounts for a significant portion of jobs, economic output, and exports in Israel, making it an important factor in the country’s economic stability. Additionally, Israel’s tourism sector, particularly in Jerusalem, draws millions of visitors each year, contributing to the country’s economic resilience.
Despite the short-term impact of the ongoing conflict on Israel’s economy, a clear victory over Hamas is essential for long-term stability and growth. The positive outlook for Israel’s economy remains strong as long as this goal is achieved.