Finance Ministry lowers growth forecast amidst gloomy economic news
September 08, 2024
Reading time: 2 minutes
Citing numbers indicating a difficult economic environment in the second quarter of 2024, the Israeli Finance Ministry issued a statement on Sunday lowering the growth forecast for the year amidst negotiations over the State budget. The new estimate is that Israel's economy will grow just 1.1% in 2024, down from a previous estimate of 1.9%.
The revised estimate is more bad news for the Israeli economy following an announcement last week by Finance Minister Bezalal Smotrich that the State budget will need to be cut by NIS 35 billion in 2025, with most of those cuts coming from social welfare programs.
The ongoing war has led to a slowdown in both imports and exports, as well as a massive decrease in the number of incoming tourists. GDP for the period between April and June is down an estimated 1.4%, although unemployment remains relatively low.