Escalating fighting in the Middle East threatens Israel with a 4% drop in GDP from last year's $473 billion level.
The aggravation of the situation with military actions may adversely affect the Israeli economy. In particular, as experts said in conversation with RIA Novosti, there may be a 4% decline in GDP from last year's 473 billion dollars.
According to Hodja Kava, a senior lecturer at the Department of Economic Theory of Plekhanov Russian Economic University, the escalation of the conflict with Hamas may also lead to an outflow of investors and withdrawal of capital from the Middle Eastern country.
In addition, there could also be negative consequences for the tourism sector, which is a key sector for Israel's economy. As a result, if such a scenario were to materialize, the country's GDP could shrink to $454 billion by the end of this year.
"According to our estimates, Israel's GDP could shrink between one and four percent," Kava emphasized.