The Melnick State of the Israeli Economy Index witnessed a decline of 1.4 percent in November 2023, shedding light on the profound impact of the ongoing conflict on economic activities within the business sector. The data underscores a contraction of approximately 2.6 percent in the business sector during the initial two months of the war, with an anticipated drop in the GDP growth rate to 2.2 percent for the entire year of 2023.
In October, the revenue index for commerce and services, a crucial gauge of domestic demand and particularly private consumption, experienced a notable decrease of around 13.8 percent. This decline mirrors the severity observed during the first month of the COVID-19 shutdown, revealing the tangible economic ramifications of the ongoing geopolitical instability.
The industrial production index, indicative of the supply side of the business sector, also…
