An Israeli economic expert, who studies the economic aspects of the Israeli occupation of Palestinian territories, explains how the war mobilization in Gaza has supported a “zombie” economy that appears to be functioning but lacks any future prospects.
A lengthy interview was conducted with the expert, who serves as the director of an alliance for justice between Israelis and Palestinians, covering many aspects of the Israeli economy.
Here is a summary of the key points made about the deteriorating economic situation in Israel:
- The war on Gaza caused economic shocks and related crises. Tens of thousands of families were displaced from border areas with Gaza and Lebanon, and direct missile and artillery strikes caused damage in those regions, affecting productivity.
- Approximately 300,000 reserve soldiers were mobilized for extended periods, leading to a significant shortage in the workforce. Many training days invested in these workers were lost.
- The educated middle class in Israel has begun considering emigration. Many families and educated talents have already emigrated due to the impossibility of raising their children there.
- Manifestations and indicators of the economic crisis in Israel include many citizens transferring their savings abroad, fearing inflation, currency devaluation, a decline in Israel’s credit rating, and increased investment risks.
- Revenues were diverted to fund the war, leading to a deterioration in the quality of public services and higher education. Israel is nearing a debt trap.
- Israel’s international reputation has become toxic, facing an unprecedented level of boycott, divestment, and sanctions.
- The Zombie Economy: The expert described the Israeli economy as a zombie economy, stating it was given this label because it is an economy that is moving but is not aware of its own crisis or imminent end.
The expert stated:
The Israeli government passed a budget that does not reflect the actual reality of expenditures, leading to debt spiraling out of control.
- The Israeli economy heavily relies on massive military spending and foreign credit without a sustainable plan for the future.
- The government passed a budget that does not reflect the actual reality of expenditures, leading to debt spiraling out of control.
- Major deals in the technology sector give a false impression of economic strength. What is actually happening is that tech workers own shares, sell them to foreign companies, and transfer the funds abroad. Technological innovations and investments in this sector are declining significantly.
How was the stock market boom and shekel stability explained?
In explaining the stock market boom and the stability of the shekel’s price, the expert said that increased salaries for reserve soldiers had a significant impact on the stock market and shekel stability. These soldiers invest their money in stocks because they cannot spend it in Gaza. They are trying to protect their savings by investing in the rising stock market, contributing to the economic bubble.
- The Israeli central bank managed the crisis by selling large quantities of dollars to give the impression that everything was under control, but this is nothing more than market manipulation.
- Deterioration of living conditions and increase in poverty rates. The cost of the war significantly impacted the majority of households, contributing to increased debt. An annual report by an Israeli non-governmental organization
An Israeli economic expert
The term “Israeli economic expert” typically refers to a professional specializing in Israel’s economy, which is known for its innovation, technology sector, and dynamic market. Israel’s economy is often highlighted for its resilience, entrepreneurial spirit, and significant contributions to fields like cybersecurity, agriculture, and healthcare technology.If you’re looking for information on a specific expert, their work, or Israel’s economic policies, feel free to ask!
