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OECD cuts Israel growth forecast as costs of war expected to continue to mount

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The Paris-based organization says risks remain high and urges the government to take fiscal action to bring the deficit down
The OECD has revised its economic growth forecast for Israel downwards, projecting a GDP increase of 1.4% for 2023 and 1.9% for 2024, a significant drop from earlier estimates of 2.3% and 2.8% respectively. This adjustment comes in light of the ongoing conflict with Hamas, which has led to increased military spending and economic disruptions. The report highlights that the war's costs are expected to continue rising, with potential long-term impacts on Israel's economy due to sustained military engagement, reduced consumer confidence, and possible declines in tourism and investment. The OECD also noted that while Israel's economy showed resilience in the third quarter, the outlook remains uncertain with risks skewed to the downside, particularly if the conflict escalates or prolongs.

Read the Full The Times of Israel Article at:
[ https://www.timesofisrael.com/oecd-cuts-israel-growth-forecast-as-costs-of-war-are-expected-to-continue-to-mount/ ]