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
Al Mayadeen's correspondent: 67 martyrs in Israeli strikes on Gaza since morning.
Al Mayadeen's correspondent in West Bank: Occupation executes large-scale operation in Al-Jamasin, al-Eyada neighborhoods in Old Askar Camp, East of Nablus.
Al Mayadeen's correspondent in South Lebanon: One person killed in strike that targeted a motorcycle in Al-Mansouri.
Al Mayadeen's correspondent in South Lebanon: Israeli drone strikes motorcycle in town of Al-Mansouri.
Yemeni Armed Forces: The blockade on the Port of Haifa comes following the successful imposition of the siege on the Port of Umm al-Rashrash, which has since ceased operations
Yemeni Armed Forces: The Port of Haifa is now officially part of our target bank
Yemeni Armed Forces calls on companies with ships currently in the Port of Haifa or en route to it to take into account the contents of the statement and any forthcoming announcements
Yemeni Armed Forces: The imposition of a blockade on the Port of Haifa comes in response to the enemy’s escalation of its brutal aggression against Gaza and the continued siege and starvation
Yemeni Armed Forces: Our decisions and operations against the occupying entity will not cease until the aggression on Gaza ends and the blockade on it is lifted
Yemeni Armed Forces: We have decided to begin enforcing a naval blockade on the Port of Haifa, which is now among our list of designated targets

'Israel's' economy suffers slow growth after 11th month of war on Gaza

  • By Al Mayadeen English
  • Source: Israeli media
  • 21 Aug 2024 15:18
  • 2 Shares
3 Min Read

The Central Bureau of Statistics reports that during the second quarter, corporate production fell by 1.9% while exports of goods and services fell by 8.3%.

Listen
  • x
  • A cargo ship is seen docked at a containers terminal in the port of Haifa, Aug. 15, 2024. (AP)
    A cargo ship is seen docked at a containers terminal in the port of Haifa, Aug. 15, 2024. (AP)

Preliminary data released on Sunday by the Central Bureau of Statistics shows that "Israel's" economy expanded considerably more slowly in the second quarter of the year than economists had predicted, as the occupation's months-long war on Gaza continue to have a negative impact on exports and investments.

According to an initial estimate by the statistics agency, the gross domestic product (GDP) expanded at an annualized 1.2% in the April to June period compared with the previous three months and decreased by 1.4% in comparison with the equivalent quarter last year, putting the figure at less than the 2.3% to 5% range that economists had predicted. In the meantime, GDP decreased 0.4% on a per capita basis in the second quarter after accounting for population increase.

Bank Mizrahi-Tefahot chief markets economist Ronen Menachem explained, “Gross domestic product per capita shrank both compared to the previous quarter and compared to the corresponding quarter last year, a figure that clearly indicates the significant damage that the ongoing war is causing to the economy."

The statistics office reported that during the second quarter, corporate production fell by 1.9% while exports of goods and services fell by 8.3%. The increase in fixed asset investment was only 1.1%.

According to Jonathan Katz, chief economist at Leader Capital Markets, "Wage growth and government support to evacuees and mobilized soldiers" drove the second quarter's robust growth of 23.5% in private expenditure, one of the key drivers of economic activity. In the first quarter, private spending increased by 12%.

Related News

'Israel' is killing children as a hobby: Israeli opposition MK

Indonesian Hospital besieged by Israeli sniper amid ongoing Gaza war

Earlier this month, Fitch Ratings lowered "Israel's" credit rating from "A+" to "A" with a negative outlook, citing the ongoing war against the Gaza Strip, which has had a tremendous impact on "Israel's" public finances. 

Analysts at Fitch noted that the downgrade "reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks, and military operations on multiple fronts." It was also reported that they anticipate the war on Gaza could persist until 2025 and potentially expand to other fronts.

Fitch also highlighted that increased military spending, human losses, infrastructure damage, and continued economic and investment disruptions could lead to further credit deterioration. Regional tensions remain high.

Meanwhile, former Israeli occupation forces ombudsman Major General Itzhak Brik last week pointed to the larger-scale cost of the Israeli war on Gaza in an article he wrote for Maariv.

The former Israeli official decried the current battles as a "war of attrition" that has affected the Israeli regime for nearly a year. He said that the war is leading to the "collapse of the Israeli economy."

He said that the occupation is facing a "deficit exceeding 8%" of Gross Domestic Product (GDP). Brik revealed that officials in the Israeli Finance Ministry fear that the deficit will increase to 9% of GDP this year, a number that far exceeds the 6.6% target the government had expected. 

"Many of the driving forces behind the growth of the Israeli economy, namely high-tech entrepreneurs, are leaving Israel," Brik added.

  • Gaza Strip
  • Occupied Palestine
  • economy
  • war on Gaza
  • Palestine
  • Israel
  • Gaza genocide
  • Israeli occupation
  • Gaza

Most Read

Gaza and the logic of necropolitics: Sovereignty measured by killing

Gaza and the logic of necropolitics: Sovereignty measured by killing

  • Politics
  • 15 May 2025
Two F-35 jets arrive at it's new operational base Wednesday, Sept. 2, 2015, at Hill Air Force Base, in northern Utah. (AP)

F-35 near-misses over Yemen signal new risks for 'Israel': Forbes

  • Politics
  • 14 May 2025
Abu Obaida

Abu Obeida posts shortly after Israeli reports about his assassination

  • Palestine
  • 15 May 2025
YAF say struck 'Israel's' Ben-Gurion Airport with missiles, drones

YAF say struck 'Israel's' Ben Gurion Airport with missiles, drones

  • MENA
  • 18 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
Britain's Prime Minister Keir Starmer, Deputy Prime Minister Angela Rayner and Foreign secretary David Lammy leave after attending the annual Commonwealth Day Service at Westminster Abbey in London, Monday, March 10, 2025. (AP)
Politics

Labour Minister breaks ranks, blasts government over Gaza

China’s advanced AI may surpass US Efforts: Report
Asia

China’s advanced AI may surpass US efforts

A Boeing 777X is brought on the runway ahead of a display flight, at the Farnborough Air Show fair in Farnborough, England, Tuesday, July 19, 2022 (AP)
US & Canada

Boeing stock rises after Trump secures major Gulf deals

MEPs urge the Commission to act so that all EU citizens can travel to the US without visas©AP Images/European Union-EP
US & Canada

Americans race for EU residency as immigration doors begin to close

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