Tue Sep 24 02:09:58 UTC 2024: ## Gaza War Cripples Israeli Economy, Pushing Communities Towards Poverty
**Tel Aviv, Israel** – Nearly a year of war in Gaza has taken a heavy toll on the Israeli economy, pushing communities across the country towards poverty, even in areas far removed from the fighting.
The ongoing conflict, the longest since Israel’s creation, has compounded pre-existing economic strains caused by mass protests against Prime Minister Benjamin Netanyahu’s controversial judicial reforms.
“The Israeli economy may be solid, but it is struggling to withstand this war that has lasted too long,” warned economist Jacques Bendelac, predicting a possible recession if the fighting persists.
While the Israeli GDP saw a rebound in the first quarter of 2024, growth slowed significantly in the second quarter, with major credit rating agencies downgrading Israel’s debt. The war’s escalation into northern Israel, with Hamas ally Hezbollah battling Israeli forces across the border, has fueled concerns about its longevity.
Despite these dire warnings, Netanyahu insists that the economy is “stable and solid,” attributing the strain to the war and predicting improvement upon its conclusion.
However, the war’s impact is deeply felt across various sectors:
* **Construction:** Work has ground to a halt in Tel Aviv, with skyscrapers and infrastructure projects left unfinished.
* **Tourism:** The war has driven away tourists and religious pilgrims, with tourist arrivals plummeting by 75% compared to the previous year.
* **Labor:** Israel’s decision to halt work permits for Palestinians has created severe labor shortages, impacting key sectors like construction, agriculture, and industry.
This economic hardship is being acutely felt by ordinary Israelis.
Freelance guide Hilik Wald, forced to abandon his livelihood due to the lack of tourism, exemplifies the struggle. He now works part-time at a train station, relying on government assistance to make ends meet.
The war has also exacerbated existing vulnerabilities, pushing families into poverty. High living costs coupled with the economic slowdown are driving many families into debt they cannot repay.
Humanitarian organizations are witnessing a surge in demand for their services, with new faces appearing in food distribution queues.
While the Israeli economy has a history of rebounding after wars, experts warn that the longer the conflict drags on, the more difficult and protracted the recovery process will be.
As the conflict enters its eleventh month, the future of the Israeli economy remains uncertain, casting a shadow over the lives of its citizens.
First Piper 