Coronavirus Damage on Economy Four Times Worse than 2008 Crisis

The damage from the coronavirus pandemic on the economy to date is about 5% of GDP, four times the damage from the sub-prime crisis of 2008, and similar to the fallout following the dot-com crash of 2001-2003, the Bank of Israel said in its annual report presented Tuesday.

The main challenges facing Israel’s economy now are taming the fiscal deficit and restoring unemployment to normal levels, Bank of Israel governor Prof. Amir Yaron said. GDP in 2020 fell by 2.5%, led by a 9.5% in private consumption. Unemployment averaged 15.7% over the course of the year.

While Israel may eventually need to raise taxes in order to reduce the debts it incurred during the coronavirus pandemic, tax rates are not expected to rise in 2021, Yaron said at a press conference upon presenting the central bank’s annual report. (JPost / VFI News)

“If your brother becomes poor and cannot maintain himself with you, you shall support him as though he were a stranger and a sojourner, and he shall live with you.” - Leviticus 25:35