The ongoing conflict in the Middle East could have severe economic repercussions for Israel, including a decline in GDP, capital flight, and loss of investors, according to experts cited by RIA Novosti.
Hodja Kava, a senior lecturer at the Chair of Economic Theory at the Plekhanov Russian University of Economics, has warned that Israel’s GDP could shrink by 1-4% compared to last year’s figures of $473 billion. Additionally, there may be a surge in price growth.
“Depending on how events unfold, the current conflict could have very serious economic consequences for Israel,” explained Kava.
He further added that Israel is also anticipating a decline in tourism revenues.
Murad Saleh oglu Sadygzade, an expert from the Russian Council on International Affairs, stated that if the conflict ends soon, Israel could face a political crisis. Meanwhile, Maxim Osadchy, the head of the analytical department at BKF Bank, believes that the risks for Israel today are weaker compared to previous conflicts.
Previously, political analyst and journalist Yuriy Svetov argued that Israel has no right to evict peaceful residents of Gaza from their homeland.
Earlier, the United States had mentioned the possible timeframe for Israel’s ground operation in Gaza.
