Thursday, May 2, 2024 • 7:00 PM Israel Time | 12:00 AM ET
Seven months into the war, how are Hamas’ October 7 massacre and subsequent military operations in Gaza impacting Israel’s economy?
According to David Zaikin, founder and CEO of Key Elements Group, the Jewish state has proven resilient. Jerusalem Post Editor-in-Chief Zvika Klein speaks to her Key Elements Group CEO David Zaikin (Credit: JERUsaleM POST)
“Due to the impact of the terrorist attacks, if we take into account the impact on sectors such as tourism, agriculture, and construction in October, November, and December, we find that GDP decreased by about 5%; This is obviously a big shock for the economy,” Zaikin said in a conversation with Jerusalem Post Editor-in-Chief Zvika Klein. “But when you look at what happened after that, it’s very interesting.”
Key Elements conducted a study comparing the impact of October 7th in Israel and September 11th in the United States.
“We see that the two crises have some similarities,” Zaikin said.
The expert explained that the Israeli economy has already shown signs of recovery in recent months.
“Israel’s economy is built on human capital, which represents the resources Israel has invested over the long term since its founding in 1948,” Zaikin said. This is why the country’s economy has proven so resilient. ”
Investors are aware of that, which is why some $8 billion in Israeli bonds have been purchased since Oct. 7, against a total demand of $34 billion, Zaikin said.
“Once we think the situation has stabilized, we will invest further,” he said.
