Israel's Economic Struggles Amidst Gaza Conflict

Israel's economic growth fell short of expectations in the last quarter of 2024, primarily due to the conflict in Gaza against Hamas. GDP increased by an annualized 1.0%, significantly lower than the anticipated 5.7%. The war also expanded to Lebanon, concluding with a ceasefire in January 2024.

Israel's economic growth did not meet expectations in the fourth quarter of 2024, heavily impacted by the ongoing conflict in Gaza against the Palestinian Islamist group Hamas.

The Central Bureau of Statistics released an initial report indicating that the gross domestic product (GDP) grew by an annualized rate of 1.0% from October to December, far below the 5.7% forecasted by a Reuters poll. Per capita, GDP rose by 1.5% for the same period.

Throughout 2024, Israel's economy expanded by only 1.0%, or a decline of 0.3% per capita, compared to 1.8% growth in 2023. The Gaza conflict, which erupted following Hamas' assault on southern Israel in October 2023, extended to confrontations with Hezbollah in Lebanon before concluding with a ceasefire by January 2024.