Israeli economy to shrink by 11% in Q4 of 2023 as Gaza war escalates

U.S. investment bank JP Morgan has sharply decreased its growth forecast for Israel by 11 percent in the fourth quarter of this year in comparison with the third quarter, as the conflict with Gaza escalates.

The bank said its preliminary estimates on the economic impact of the conflict, which began on October 7, were overly optimistic. However, J.P. Morgan still expects Israel’s GDP to grow by about 2.5 percent this year, and by two percent in 2024.