Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Factions' statement: The attendees agreed to support and continue implementing the ceasefire agreement measures, including the withdrawal of the occupation and lifting the siege.
Factions' statement: Calling for an end to all forms of torture and violations against prisoners in occupation prisons and the necessity of obligating the occupation to do so.
Statement: The current moment is crucial, making the meeting a true turning point toward national unity in defense of our people and their right to life, dignity, and freedom.
Factions' statement: Call for an urgent meeting of all Palestinian forces and factions to agree on a national strategy.
Factions' statement: Continuing joint work to unify visions and positions to confront the challenges facing the Palestinian cause.
Statement of the factions: Emphasis on the unity of the Palestinian political system and the independent national decision.
Statement: Approval to establish an international committee to oversee the financing and implementation of the reconstruction of the Gaza Strip.
Statement: The committee is responsible for managing life and services in cooperation with Arab brothers and international institutions, based on transparency and accountability.
Resistance factions' statement: Agreement to hand over the administration of the Gaza Strip to a temporary Palestinian committee of independent technocrats.
Al Mayadeen's correspondent: Two people martyred in the Israeli airstrike that targeted a vehicle in Toul.

'Israel' faces economic instability as capital flight surges 62%

  • By Al Mayadeen English
  • Source: Israeli media
  • 24 Oct 2024 19:25
  • 6 Shares
4 Min Read

A report by Calcalist paints a bleak picture of the Israeli economy’s near-term outlook, with mounting pressures in multiple sectors.

Listen
  • x
  • A view of a construction site in occupied al-Quds on Monday, Sept. 16, 2024. (AP Photo/Mahmoud Illean)
    A view of a construction site in occupied al-Quds on Monday, September 16, 2024. (AP)

Israeli-based daily business Calcalist recently published an in-depth analysis revealing a dramatic 62% increase in capital flight from "Israel" since October 7, 2023.

This surge in capital outflow, the report notes, has been exacerbated by the political and economic uncertainties following the formation of the extremist government led by Prime Minister Benjamin Netanyahu, Bezalel Smotrich, and Itamar Ben-Gvir.

According to the report, capital flight refers to the rapid exodus of financial assets from a country due to various risks, including political instability, social unrest, or geopolitical tensions.

In "Israel’s" case, the combination of escalating geopolitical risks, internal discord, and financial uncertainty has led investors to lose confidence in the Israeli economy and move their assets abroad.

The weakening of the Israeli shekel is one clear indicator of this phenomenon. The currency has fallen by about 10% since the new government took office and has fluctuated dramatically due to market instability.

Read more: Israeli shekel; one of the world’s worst performers since August

Experts from Calcalist also highlight that the regime's net financial outflows turned negative in the second quarter of 2023, with the third quarter showing a stark net outflow of $21 billion—marking a significant shift from the surplus of $1.25 billion recorded earlier.

FDI down, CDS up

In addition to the financial flight, the report outlines other concerning trends, including a decline in foreign direct investment (FDI) and a sharp rise in credit default swaps (CDS), which have quadrupled since the start of the war.

Related News

US-backed GHF in talks over future role in postwar Gaza: FT

Majority of Americans support recognizing Palestinian state

The widening interest rate gaps between Israeli and US bonds are also seen as an indicator of increasing risks, as foreign investors offload government bonds, signaling a loss of faith in the regime's financial future.

The report paints a bleak picture of the Israeli economy’s near-term outlook, with mounting pressures in multiple sectors. Israeli banks and tech companies are particularly affected, with local investments drying up and international investors increasingly cautious.

Calcalist calls for urgent policy measures to address the growing economic challenges, warning that without action to restore investor confidence, "Israel" could face severe economic consequences, possibly leading to a financial crisis.

While some economic indicators, such as foreign exchange reserves, remain stable, the overall trajectory of capital outflow and investor sentiment suggests that "Israel’s" economic situation could deteriorate further if swift action is not taken.

Read more: Israeli economy 'is a sinking ship': Israeli media

'Israel's' war manifests poverty

Economist Jacques Bendelac warned last month that "Israel’s" economy could face a potential recession if the war on Gaza continues to drag on.

Despite some recovery in early 2024, with a 14% rebound after a sharp 21% contraction in GDP during the fourth quarter of 2023, growth has slowed significantly, with only a 0.7% increase in the second quarter of 2024.

Bendelac cautioned that the prolonged war, combined with rising costs of living and significant disruptions in key sectors like construction, tourism, and agriculture, would exacerbate economic stagnation.

He also highlighted the growing risks of poverty, particularly for settler communities, as many families  struggle to repay debts and loans amidst the crisis.

Humanitarian organizations have already seen a surge in demand for aid, with more individuals relying on food distribution services.

Bendelac noted that while economies often experience a strong rebound after a war, the longer this conflict persists, the slower and more difficult the recovery will be.

  • war on Gaza
  • shekel
  • BDS
  • Israel
  • Israeli economy
  • Boycott Israel
War on Gaza

War on Gaza

Most Read

From previous scenes of the Qassam Brigades targeting an Israeli D9 bulldozer with a Yassin 105 shell, east of Deir al-Balah. (Military Media of the Qassam Brigades)

US knew fatal Rafah blast cause was not Hamas op., says journalist

  • Politics
  • 20 Oct 2025
'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • Today
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Children walk along a sidewalk, Thursday, June 15, 2017 in New York. (AP)
Health

Could AI extend lifespans while fueling despair and joblessness?

milei
Politics

Milei faces sharp drop in approval rating ahead of midterm elections

Israeli settlers set fire to Palestinian vehicles in Deir Dibwan, near Ramallah, during a pre-dawn raid. (social media)
Politics

Israeli settlers torch three Palestinian cars near Ramallah

Binance founder Changpeng Zhao is seen leaving his court sentencing in 2024. (AFP)
Economy

Trump pardons Binance founder Changpeng Zhao

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS