Israeli circles are closely following the negative developments in the world economy and its consequences, especially the increase in inflation, the results of the war in Ukraine and the embargo of a giant country like Russia. Israel is looking for new economic options. .
Given that Israel’s pessimistic estimates have increased economic uncertainty in recent months and created high rates of anxiety among politicians and economists, although inflation is relatively low compared to European countries, this is expected The slowdown will affect Israel’s main trading partners. It will also have to contend with a tough economic environment in the coming months.
In a joint study published by the Institute for National Security Research at Tel Aviv University, Tomer Molotov and Stephen Claver stated: “Data from the first half of this year shows that the unemployment rate in Israel has reached 3.4 percent, and fears of rising inflation. is spiraling out of control and reaching record highs in the countries, on the other hand, the Bank of Israel raised interest rates again in August to 2 percent, with the expectation of raising interest rates again to 3 percent by the end of the year. to give year to curb inflationary pressure
He added in a study: “Despite relatively low inflation in Israel, even before the impact of recent global events, it increased the cost of living, and the weakest and most vulnerable sectors of any increase in the consumer price index belong to the sectors affected by the Corona crisis, which feel inequality. And it increases the tension in the Israeli society, especially in this period on the eve of the elections, due to the situation of political instability and the fear of being unable to resist, they recovered less.
It should be noted that the Israeli government, with a small economy dependent on international trade, may feel the consequences of the uncertainty of the global economy in the final months of the year, even if the macroeconomic indicators are stable so far, but it is estimated that in 2023 we will see the effects of the global recession. We will also be on the Israeli economy, for example, a slowdown in Europe could lead to a decrease in Israeli exports to this market, which now represents more than a third.
With the knowledge that Israeli circles are concerned about the impact of their economy with negative global developments, considering the great interaction between the two economies of Israel and the world, and as long as the American economy suffers from negative growth in a row in the second quarter, and its GDP declines. has been found, this is considered a matter of concern and apprehension. The Israelis stand out because of the depth of connection between them.
Source: Lebanon Debate
