UPDATE: Israel Threatened by Economic FALLOUT & Fear of Hezbollah War


rani launches a satellite into space  with the help of Russia the leader of   the htis wants to be the next Nala it  seems that the htis do not hesitate   to pollute their own backyard in the entire  Red Sea the US threatens we will do to them   what we did to Iraq I’m mati Shani and  this is what happened this week in our neighborhood we start today with Iran making  another stride in its Space Program with the   help of its Ally Russia the Iranian satellite  Palace one was launched from a base in Russia about 8,000 km east of Moscow the US condemned  the launch stating that it was a clear indication   of the deepening military partnership between  Iran and Russia with Iran and Russia it seems   every small step is a giant leap backwards for  humankind in Yemen the leader of the htis ABD   Malik badti has been making headlines with his  speeches Bec BEC increasingly similar to those   of nasala the leader ofah but unfortunately he  also follows in Nala’s footsteps when it comes   to terrorism this week the holties were also  responsible for an ecological crisis in the Red Sea two missiles hit a ship carrying 41,000  tons of fertilizer causing pollution in a 29 long   kilm area the ship was on its way from the United  Arab Emirates to Bulgaria when it was attacked by   HTI forces in the Gulf of Aiden the HTI really  went the extra mile or kilometer for sticking   to metric to ensure their environmental impact  matches their humanitarian one in response the   US has launched attacks on areas under houti  control in Yemen and destroyed seven mobile   anti- ship cruise missiles that were ready to be  launched towards the Red Sea and now to our main story of today has the war been good for the  Israeli economy traditionally some argue that   it stimulates economics with government spending  on weapons infrastructure and equipment acting as   a catalyst for private sector economic activity  leading to job creation and economic growth the   classic example often cited is the United States  emergence from the Great Depression marked by then   President Franklin D Roosevelt’s New Deal program  during World War II but those who say that forget one crucial thing the war that fueled America’s  economic boom happened outside of its borders the   same can’t be said for Israel currently embroiled  in a conflict against Iranian backed terrorist   organizations Hamas and hisbah Rockets rain  down on cities civilians evacuate schools close   and jobs vanish this is not an external conflict  this is a battle within posing unique challenges   to Israel’s economic stability large numbers of  civilians have fled their homes near the borders with Lebanon and the Gaza Strip seeking refuge in  already crowded cities closer to the center of the   country tens of thousands of children are are left  without access to formal education some resorting   to makeshift classrooms in hotel conference rooms  or private homes Israel’s sea and airports face   attacks disrupting Supply chains for both imports  and exports Industries like construction and   agriculture that are heavily reliant on foreign  workers experience a sharp decline as most of them have left due to the war terrorist attacks disrupt  lives especially impacting the tourism sector a   significant employer of hundreds of thousands of  Israel now what’s the unique problem Israel faces   in this war it fights not only for its security  but against an economic downturn that threatens   the fabric of its Society the Central Bureau of  Statistics paints a grim picture revealing a 19. 4   shrinkage in Israel’s gross domestic product or  GDP in the fourth quarter of 2023 this surpasses   the 30% drop in GDP during the second quarter  of 2020 when the covid-19 pandemic prompted   a nationwide lockdown the the war has already  cost the Israeli economy as much as 255 billion   shuckles according to the CBS report so what’s the  immediate aftermath of such economic upheaval jobs   disappear as businesses close consumer spending  plummets investment and trade drop and large   companies relocate their operations out of the  country all of this leads Israel’s government to borrow heavily to finance the war while covering  unemployment and other benefits for the population   International credit rating agencies respond by  downgrading Israel’s investment profile making   everything more expensive and challenging and if  all of that wasn’t enough while Israel battles to   remove Hamas terrorists from Gaza we also face  the threat ofala in the north with a far more   deadly missile Arsenal menacing the civilian  population of the north the IDF estimates that   in a large scale conflict with hisbah as many  as 8,000 Rockets a day could Target Israel the entire country would be in range pausing a severe  risk to both civilians and the economy many of   kah’s rockets have guidance systems allowing  precise targeting of military bases and key   infrastructure like electrical power plants and  water pumping stations the repercussions for the   civilian population could be dire eclipsing by  far the economic toll of the war against Hamas   and if there was any doubt the war on terror  is costly and this is where Israel needs its   friends and allies like Marshall Witman spokesman  for the American Israel public affairs committee recently said as Israel is battling to remove  Hamas terrorist from Gaza Galah with a far more   deadly missile Arsenal is threatening civilian  populations in the north it is imperative that   Israel immediately receives the necessary  resources to defend against these threats   end quote so how does this war impact Israel’s  interconnected economy with neighboring countries   and the Palestinian Authority administrated cities  in Judea and Samaria over 200,000 Palestinians   from Palestinian Authority administrated cities  work in Israel and in Israeli communities in Judea and Samaria or I should say they worked prior to  October 7th Israel exports significant volumes of   goods and services to those cities as well as  to Jordan and Egypt the war prompted Israel to   restrict the entry of Palestinian workers causing  a massive slowdown in the sector reliant on this   labor decreased income for Palestinian has  resulted in reduced spending on Israeli goods   and services Jordan and Egypt quietly decreased  consumption of Israeli goods and services while   Egypt suffers an income drop due to the HTI Rebels  supporting Hamas by firing on civilian ships in the Red Sea shipping companies avoid this route  bypassing the suett canal and depriving Egypt of   Transit fees in short it’s a lose lose situation  for everyone who’s involved all these factors lead   to an undeniable conclusion the war forced  upon Israel by the Hamas Massacre of October   7th 2023 has not been good for the economy jobs  vanish businesses close consumer spending drops   and Investments and trade decline the hope for  a rebound when the fighting stops is shadowed   by the ever presentent threat of more intense and  destructive conflicts especially with hisbah in the north so does Israel have a plan for economic  recovery the Central Bureau of Statistics suggests   a 19.4 shrinkage in GDP indicating a need for  strategic intervention as the war in Gaza winds   down there is hope for a modest recovery in the  first quarter of 2024 Rockets fired into Israel’s   South decreased and IDF reserves returned home  however multiple factors continue to drag on   the economy with a looming threat of a larger  war in the North construction and agriculture   both riing heavily on foreign workers have seen  sharp declines the tourism sector once thriving is on the verge of collapse even if the conflict  remains contained rebuilding Israel’s economy to   pre-war levels will require time and concentrated  effort so this is where being a startup Nation   faces the test we would have to reinvent ourselves  and find new resources necessity is the mother of   reinvention after all in the face of an economic  downturn Israel’s government is taking strategic   interventions to stabilize the economy and promote  growth the Ministry of Finance is working on a comprehensive plan to support businesses and  households including grants loans and tax relief   the Bank of Israel is taking measures to maintain  Financial stability and ensure the flow of credit   to the economy the government is also working to  attract foreign investment and promote exports and   one final thought if we’ve learned anything from  the past Wars Israel has faced it is not wise to   bet against Israel that’s all for this week I’m  mati Shani please continue to follow us to find out what God is doing in our neighborhood and  I hope you live in a calmer neighborhood than ours


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