With Operation Swords of Iron entering its 42nd day, the war is also having a major effect on Israel’s economy.
Defense Minister Yoav Gallant met yesterday (Friday) with Bank of Israel Governor Professor Amir Yaron. The meeting at the Defense Minister’s office in the Kiryah included officials from the Defense Ministry and the Bank of Israel. During the conversation, Minister Gallant told Yaron that “the future of the Israeli economy depends on a clear-cut victory over Hamas.”
The Bank of Israel Governor surveyed the macroeconomic situation in light of the war’s effects on the economy and the steps the Bank of Israel has taken, as well as the situation of the state budget. The governor thanked the defense establishment for its close cooperation in time of war and quiet. The Defense Minister expressed his appreciation to the BoI governor for his work and contribution to strengthening and fortifying the economy in times of both quiet and war, and noted that the economic perspective is a highly important layer taken into consideration when making wartime decisions.
The Defense Minister and BoI Governor noted that they share the approach that security strength and economic strength are things which are intertwined, and that a clear victory in war is a significant component of future economic growth for the State of Israel. The Defense Minister and the governor also agreed that there is maximal importance in opening up the economy and bringing it back to maximal activity, depending on the security developments and the war.
