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rani launches a satellite into space with the help of Russia the leader of the htis wants to be the next Nala it seems that the htis do not hesitate to pollute their own backyard in the entire Red Sea the US threatens we will do to them what we did to Iraq I’m mati Shani and this is what happened this week in our neighborhood we start today with Iran making another stride in its Space Program with the help of its Ally Russia the Iranian satellite Palace one was launched from a base in Russia about 8,000 km east of Moscow the US condemned the launch stating that it was a clear indication of the deepening military partnership between Iran and Russia with Iran and Russia it seems every small step is a giant leap backwards for humankind in Yemen the leader of the htis ABD Malik badti has been making headlines with his speeches Bec BEC increasingly similar to those of nasala the leader ofah but unfortunately he also follows in Nala’s footsteps when it comes to terrorism this week the holties were also responsible for an ecological crisis in the Red Sea two missiles hit a ship carrying 41,000 tons of fertilizer causing pollution in a 29 long kilm area the ship was on its way from the United Arab Emirates to Bulgaria when it was attacked by HTI forces in the Gulf of Aiden the HTI really went the extra mile or kilometer for sticking to metric to ensure their environmental impact matches their humanitarian one in response the US has launched attacks on areas under houti control in Yemen and destroyed seven mobile anti- ship cruise missiles that were ready to be launched towards the Red Sea and now to our main story of today has the war been good for the Israeli economy traditionally some argue that it stimulates economics with government spending on weapons infrastructure and equipment acting as a catalyst for private sector economic activity leading to job creation and economic growth the classic example often cited is the United States emergence from the Great Depression marked by then President Franklin D Roosevelt’s New Deal program during World War II but those who say that forget one crucial thing the war that fueled America’s economic boom happened outside of its borders the same can’t be said for Israel currently embroiled in a conflict against Iranian backed terrorist organizations Hamas and hisbah Rockets rain down on cities civilians evacuate schools close and jobs vanish this is not an external conflict this is a battle within posing unique challenges to Israel’s economic stability large numbers of civilians have fled their homes near the borders with Lebanon and the Gaza Strip seeking refuge in already crowded cities closer to the center of the country tens of thousands of children are are left without access to formal education some resorting to makeshift classrooms in hotel conference rooms or private homes Israel’s sea and airports face attacks disrupting Supply chains for both imports and exports Industries like construction and agriculture that are heavily reliant on foreign workers experience a sharp decline as most of them have left due to the war terrorist attacks disrupt lives especially impacting the tourism sector a significant employer of hundreds of thousands of Israel now what’s the unique problem Israel faces in this war it fights not only for its security but against an economic downturn that threatens the fabric of its Society the Central Bureau of Statistics paints a grim picture revealing a 19. 4 shrinkage in Israel’s gross domestic product or GDP in the fourth quarter of 2023 this surpasses the 30% drop in GDP during the second quarter of 2020 when the covid-19 pandemic prompted a nationwide lockdown the the war has already cost the Israeli economy as much as 255 billion shuckles according to the CBS report so what’s the immediate aftermath of such economic upheaval jobs disappear as businesses close consumer spending plummets investment and trade drop and large companies relocate their operations out of the country all of this leads Israel’s government to borrow heavily to finance the war while covering unemployment and other benefits for the population International credit rating agencies respond by downgrading Israel’s investment profile making everything more expensive and challenging and if all of that wasn’t enough while Israel battles to remove Hamas terrorists from Gaza we also face the threat ofala in the north with a far more deadly missile Arsenal menacing the civilian population of the north the IDF estimates that in a large scale conflict with hisbah as many as 8,000 Rockets a day could Target Israel the entire country would be in range pausing a severe risk to both civilians and the economy many of kah’s rockets have guidance systems allowing precise targeting of military bases and key infrastructure like electrical power plants and water pumping stations the repercussions for the civilian population could be dire eclipsing by far the economic toll of the war against Hamas and if there was any doubt the war on terror is costly and this is where Israel needs its friends and allies like Marshall Witman spokesman for the American Israel public affairs committee recently said as Israel is battling to remove Hamas terrorist from Gaza Galah with a far more deadly missile Arsenal is threatening civilian populations in the north it is imperative that Israel immediately receives the necessary resources to defend against these threats end quote so how does this war impact Israel’s interconnected economy with neighboring countries and the Palestinian Authority administrated cities in Judea and Samaria over 200,000 Palestinians from Palestinian Authority administrated cities work in Israel and in Israeli communities in Judea and Samaria or I should say they worked prior to October 7th Israel exports significant volumes of goods and services to those cities as well as to Jordan and Egypt the war prompted Israel to restrict the entry of Palestinian workers causing a massive slowdown in the sector reliant on this labor decreased income for Palestinian has resulted in reduced spending on Israeli goods and services Jordan and Egypt quietly decreased consumption of Israeli goods and services while Egypt suffers an income drop due to the HTI Rebels supporting Hamas by firing on civilian ships in the Red Sea shipping companies avoid this route bypassing the suett canal and depriving Egypt of Transit fees in short it’s a lose lose situation for everyone who’s involved all these factors lead to an undeniable conclusion the war forced upon Israel by the Hamas Massacre of October 7th 2023 has not been good for the economy jobs vanish businesses close consumer spending drops and Investments and trade decline the hope for a rebound when the fighting stops is shadowed by the ever presentent threat of more intense and destructive conflicts especially with hisbah in the north so does Israel have a plan for economic recovery the Central Bureau of Statistics suggests a 19.4 shrinkage in GDP indicating a need for strategic intervention as the war in Gaza winds down there is hope for a modest recovery in the first quarter of 2024 Rockets fired into Israel’s South decreased and IDF reserves returned home however multiple factors continue to drag on the economy with a looming threat of a larger war in the North construction and agriculture both riing heavily on foreign workers have seen sharp declines the tourism sector once thriving is on the verge of collapse even if the conflict remains contained rebuilding Israel’s economy to pre-war levels will require time and concentrated effort so this is where being a startup Nation faces the test we would have to reinvent ourselves and find new resources necessity is the mother of reinvention after all in the face of an economic downturn Israel’s government is taking strategic interventions to stabilize the economy and promote growth the Ministry of Finance is working on a comprehensive plan to support businesses and households including grants loans and tax relief the Bank of Israel is taking measures to maintain Financial stability and ensure the flow of credit to the economy the government is also working to attract foreign investment and promote exports and one final thought if we’ve learned anything from the past Wars Israel has faced it is not wise to bet against Israel that’s all for this week I’m mati Shani please continue to follow us to find out what God is doing in our neighborhood and I hope you live in a calmer neighborhood than ours
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