Israel's central bank slashes growth by 1.5 → 0.5% this year

Israel's economic prospects are also getting darker as the war in Gaza drags on and escalates.

Israel's central bank has drastically lowered its growth forecast for the year to 0.5% from 1.5% previously, local media reported.

It also cut its growth forecast for next year from 4.2% to 3.8%.

"The assessment that the gradual recovery of economic activity will be delayed into the second half of next year as fighting unfolds more intensely early next year," the Israeli central bank said.

Earlier on the 27th of last month, international credit rating agency Moody's lowered Israel's national credit rating by two notches from A2 to Baa1, citing the escalation of disputes with Hezbollah.