Israel economy shows wartime resilience
A new analysis by JPMorgan Chase suggests Israel’s economy will face a temporary slowdown due to the war but is likely to rebound quickly once the most intense phase subsides. The bank cut its first-quarter 2026 growth forecast to around 1% annualized, while projecting a sharp recovery to roughly 8.5% in the second quarter as economic activity resumes. For the full year, JPMorgan slightly lowered its 2026 growth outlook to 4.5% and expects some delayed growth to shift into 2027, while estimating the conflict could widen Israel’s budget deficit to about 4.2% of GDP. Analysts note that Israel’s historically strong recovery capacity and energy security from domestic natural gas production should help cushion the economic impact.
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