Israel's Economy Could Take up to 5 Years to Recover
It may take four to five years for Israel’s economy to recover from the coronavirus crisis, according to a new report by the Finance Ministry.
The report forecasts two possible scenarios: One in which the country manages to dance with the virus and one in which there are extreme spikes in morbidity.
Assuming that Israel’s recovery from the coronavirus crisis is somewhere in between the dot-com crisis of the early 2000s and the 2009 economic downturn, the ministry predicts that Israel’s GDP will shrink by 5.9% by the end of 2020 and grow by 5.7% in 2021.
However, if there is a more extreme crisis than expected, the impact on financial growth will be more and the rate of recovery will be slower, with GDP shrinking by 7.2% in 2020 and growing by only 2.2% in 2021.
More than a million Israelis have been out of work or put on furloughs since the start of the crisis. In the best-case scenario, the report predicts, 10% of Israelis will be out of work at the end of the year. In the worst-case scenario, 15%. (JPost / VFI News)
“God, we ask that you give Israel a swift economic recovery, so that those who are suffering can find healing and peace.”