The entire Israeli population remains in shock after the October 7th terrorist attack and the ensuing war inevitably impacts Israel's economy. The pre-war economic indicators were rather impressive -  debt to GDP ratio close to 60%, low unemployment of 3.1% and inflation not exceeding 4.2%. All these factors as well as massive interventions of the Bank of Israel contributed to the stability of the shekel whose rate to USD remains stable at 3,70 after a short term and insignificant weakening.

GDP is expected to continue to grow , even though with lesser dynamics. Israel's history reveals a pattern of facing and overcoming economic crises and the economy always emerged stronger. With the exceptional economic growth recorded in the pre-war period, Israel remains to be a land of opportunities even during the war. The focus on Israeli hi-tech, the real economic engine of the country, is crucial despite the fact that the sector is affected by a high number of conscripts among its experts. 

Various sectors, especially mid-sized companies, experience temporary crises due to a labor force shortage. Construction industry and food and beverage services are significantly affected, compounded by challenges caused by evacuations, school closures, lack of foreign workers and restricted access of Palestinians to the Israeli territory.  The international trade of Israel, from 98% dependent on sea transport, have to cope with the limited operation of the port of Ashdod while air cargo faces disruptions in available freight capacity due to cancelations of a number of flights. Transportation insurance costs have risen significantly. Efforts are underway to overcome these hurdles and to facilitate imports. 

Israel is fighting the longest war in its history, yet, despite all the difficulties, it  maintains its open-for-business approach. The nation's history of overcoming challenges through innovation and out-of-the-box thinking persists. Israel remains resilient, inviting foreign investments and anticipating a bright future beyond current difficulties.