PNN – Before the attack of the Zionist army on the Gaza Strip, the economy of this regime was suffering from severe inflation, rising prices and low wages, and a decrease in the standard of living. And now, after more than 220 days of this war, the scale of the crisis has become more intense and has caused a lot of damage to various economic and financial sectors of the Zionists.
According to the report of Pakistan News Network, Al-Arabi Al-Jadeed news site in a report on the economic situation of the Zionist regime after the start of its attack on the Gaza Strip on October 7th and wrote: In the wake of severe inflation and a decrease in the standard of living in the occupied Palestinian territories, the launching of a devastating war against the Gaza Strip on October 7 and the Palestinian resistance operation further caused the destruction of Israel’s economy.
Deteriorating economic growth crippled the Israeli regime
Zionist economists in an interview with the Washington newspaper in early May estimated that the war against the Gaza Strip in the first quarter of this year cost the Israeli Prime Minister Benjamin Netanyahu’s cabinet $220 million per day.
At the same time, the Central Bank of Israel expects that the growth of the gross domestic product of this regime will decrease to 1 percent by the end of 2024, which is three percent less than in 2023.
The International Monetary Fund also pointed out that its estimates indicate a 1.6% growth of the economy this year, and this figure has decreased by 3.1% compared to the previous forecasts, on April 17, it predicted that the economic growth of the Zionist regime in 2024 will be reduced by half compared to the forecast of last January, and the reason for this is the continuation of the war against Gaza and the battles in the north of the occupied Palestine with the Lebanese Hezbollah.
The forecast of a decrease in growth was made after the financial inability of the Zionist regime, due to the consequences of the war on the economy and public debt, destroyed the prospects set by the cabinet of the Israeli regime and Moody’s lowered Israel’s credit rating to A2 due to the negative outlook.
Moody’s is an American financial and business services company that provides bond market analysis, securities exchange, crisis management and investment fund management services.
According to what the Zionist Website Globes quoted Yali Rotenberg, the accountant general of the Ministry of Finance of the Zionist regime, the financial deficit of this regime is 5.6% of the gross domestic product, equivalent to 105.3 billion shekels (29.25 billion dollars). it is arrived. This figure was 4.8% last January.
The revised budget of the Israeli regime for 2024 revolves around a deficit of 6.6%, but economic analysts have emphasized that the actual deficit reaches 9% of production.
While the attack of the Israeli regime on the city of Rafah has increased the risks for the economy of this regime, the concern of the heads of Tel Aviv about the reduction of the credit rating of the Zionist regime and as a result its automatic reduction for the banks of this regime has also intensified.
After the downgrading of Moody’s rating, on May 4, Standard & Poor’s rating agency lowered the credit rating of the bonds of the two main Israeli banks, Leumi and Hapoalim, from positive to negative.
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Increase in tax burden
According to the Ministry of Finance of the Zionist regime, next year the consumption tax, i.e. the value added tax, is to be increased from 1% to 18% in order to deal with the increase in the budget deficit caused by the war against the Gaza Strip. This is the tenth time since 2002 that this tax has been increased.
According to one of the documents of the Ministry of Finance of the Israeli regime, which was reported by Calcalist website, this increase will increase the tax income of the Zionist regime’s cabinet by 7.2 billion shekels.
Recession in the construction sector
At the beginning of May, Raul Sarjo, the head of the Israel Contractors Union, sent a strong letter to the Prime Minister of this regime, Benjamin Netanyahu, in which he warned Netanyahu that the construction companies were suffering from huge debts.
In this letter, he added that according to the statistics of 2022, the construction sector constitutes about 14% of the domestic production of the Zionist regime; While the companies active in this sector owe about one trillion and 300 billion shekels to banks, institutions and the capital market.
The increase in prices in the occupied territories has affected everything
With the severe recession governing the activity of construction materials companies, whose sales have decreased by 55%, the risks have increased, and this has caused the “Israeli Regime Manufacturers Association” to hold an emergency meeting recently.
According to the report of the Zionist newspaper “Yediot Aharnot” on April 22, the Israel Manufacturers Association has warned that the entire production lines will be stopped and the companies will lose 1 billion shekels ($267 million) every month. This association has demanded rescue measures from the cabinet of the Zionist regime.
Increase in prices and decrease in value of shekel
There are increasing signs that food and consumer goods are expensive in the occupied Palestinian territories, and this has caused protests by the Zionists.
This issue caused the Calcalist specialized website to attack Nir Barkat, the Minister of Economy of the Zionist regime, on May 2 and describe him as weak.
Pointing out that Netanyahu has not fulfilled his election promise to reduce prices, Calcalist described the cabinet of the Israeli regime as a traitor.
“Haaretz” newspaper recently devoted its editorial to this issue and pointed out that “price increases have become a daily occurrence for weeks.”
The shekel, which was immediately affected by the escalation of the Israeli regime’s war against the residents of the Gaza Strip, began to decline last week, and the forecast for the worsening of the situation indicates a new wave of price increases for various goods.
With the prolongation of the war against the Gaza Strip and the removal of the mask from the face of the Israeli regime, the level of hatred of this regime’s brutality has spread in the region and the world, and this has strengthened the process of sanctioning and imposing punishments against Tel Aviv.