Economic and financial setbacks hit Israeli economy

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TEL AVIV — The growth of the Israeli economy slowed to 2.8 percent in the third quarter of 2023, compared to 3.3 percent in the second quarter. The slowdown comes amid Israel's continued aggression on the Gaza Strip since October 7. اضافة اعلان

According to Israeli statistical data obtained by Al-Mamlaka TV, JPMorgan Chase Bank, a multinational American bank, predicted a contraction of the Israeli economy by 11 percent, while Standard & Poor's anticipated a 5 percent contraction in the Israeli economy in the last quarter of the current year.

A report by Hapoalim Bank, the largest retail bank in Israel, revealed high risks for small companies due to the war on Gaza.

The bank significantly increased credit loss provisions to 662 million shekels in the third quarter compared to only 45 million shekels in the corresponding quarter of the previous year, representing a 15-fold increase.

This increase in provisions was attributed to the war and the fear that it will lead to a widespread economic crisis and bankruptcy for small companies.

JPMorgan, the world's largest investment bank, warned of the immense financial and economic challenges facing the Israeli economy as a result of the war on Gaza, deepening the Israeli government's financial deficit to 9 percent.

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