• Fri. Dec 1st, 2023

Defeating Hamas is Crucial for Israel’s Economic Stability, Says Defense Chief to Central Bank Head


Nov 18, 2023

At the Kirya military base in Tel Aviv, Israeli Defense Minister Yoav Gallant met with Bank of Israel Governor Amir Yaron to discuss the impact of the ongoing war between Israel and Hamas on the country’s economy. During the meeting, Gallant emphasized that achieving a clear victory over Hamas is crucial for the future of Israel’s economy.

In response to the economic impact of the war, Israel’s central bank has taken measures to ensure the stability of the economy. These actions include lowering interest rates and selling approximately $30 billion in foreign exchanges to support the shekel, Israel’s currency. The value of the shekel initially fell following a mass killing by Hamas but has since begun to rise.

Israel’s economy has historically proven resilient thanks to its heavy reliance on technology. Tech accounts for a significant portion of jobs, economic output, and exports in Israel, making it an important factor in economic stability. Additionally, Israel’s tourism sector, particularly in Jerusalem, draws millions of visitors each year, contributing significantly to economic resilience.

Despite the short-term impact of conflict on Israel’s economy, an optimistic outlook prevails as long as a clear victory over Hamas is achieved.

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