Israel’s Ministry of Finance reduced its forecast for economic growth in 2024 to 1.1% from 1.9% and its GDP growth forecast for next year was reduced to 4.4% from 4.6%.
These new forecasts attributed to weaker-than-expected data in Q2 suggest that the Israeli economy may grow at the slowest pace since 2009.
On the other hand, Israel expected the cost of the war until the end of next year to reach $66 billion, equivalent to 12% of the country’s GDP.
Israel posted a budget deficit of 12.1 billion shekels ($3.24 billion) in August, the Finance Ministry said on Monday, citing increased war expenses with war on Gaza.
“The deficit relative to GDP rose during the 12 months to August to 8.3% from 8.0% in July, compared to a target of 6.6% for the whole of 2024,” it added.
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