Hundreds of Israeli economists warn government of economic crisis

By Abdel Arnaout and Halime Afra Aksoy

AL-QUDS (AA) - Hundreds of Israeli economists have issued a stark warning to Prime Minister Binyamin Netanyahu and Finance Minister Bezalel Smotrich, expressing concerns about the country's economic challenges and urging immediate action.

A local newspaper, Yediot Ahronot, reported that 300 economists, including the former governor of the Bank of Israel, former bank auditors, a Nobel laureate professor, and former senior officials of Israel's Finance Ministry, have collectively sent a message to Netanyahu and Smotrich regarding the current economic situation.

Highlighting the lack of awareness among authorities about the gravity of the economic crisis, the economists stated, "The Israeli economy is facing a difficult period. Immediate measures need to be taken to prevent major damage."

They stressed that there is a need to immediately stop the financing of all activities that are not necessary for the war and rebuild the economy, and cautioned that the current approach will damage the Israeli economy and that new actions are required.

Addressing the severity of the situation, the economists called for a radical shift in national priorities and a budget reallocation to address the war's aftermath, assist victims, and rejuvenate the economy.

The message underscored that post-war expenditures might reach tens of billions of shekels, urging the prime minister and finance minister to promptly review all expenditure items in the 2023 budget.

In response to the economic challenges posed by recent attacks, the Israeli Finance Ministry unveiled a new aid plan for affected employers and workers on Sunday.

*Writing by Gokhan Ergocun from Istanbul