Israel economy shrinks as Gaza war takes bite of GDP

The 19.4-per cent fall in the final quarter was attributed to the scale of the ongoing Gaza war's effect on the high-tech nation's economy. Overall, Israel's GDP grew by 2.0 per cent in 2023, short of the 2.3 per cent projection made by the Bank of Israel after the war's outbreak in October. The country has seen massive labour shortages and the collapse of the tourism industry since the outbreak of war.