Israel’s central bank warned Monday that the Israeli economy is vulnerable to lose an annual $14 billion due to the ongoing judicial overhaul crisis.
"Israel could lose 2.8 percent of its gross domestic product annually over the next three years," the Bank of Israel said in a statement, a percentage equivalent to nearly $14 billion.
The bank said if the judicial overhaul crisis ends quickly, Israel will only lose 0.8 percent of its GDP per year over three years.
The central bank said Israeli legislations would have a great impact on the country’s economic and financial developments on the shorter and longer terms, and consequently affect Israel's monetary policy.
It, however, noted that these expectations are built on the situation assessment of the current period, which is full of uncertainties emanating from controversy over the judicial overhaul plans.
Israel has seen mass protests over the past three months against plans by the government of Prime Minister Benjamin Netanyahu for judicial reform, seen by the opposition as an attempt to reduce the powers of the judicial authority in favor of the executive.
Netanyahu, however, insists that his judicial plans would enhance democracy and would restore the balance between the legislative, executive, and judicial powers.
Last week, Netanyahu, who is on trial for corruption, bowed to pressure and announced a temporary halt to the judicial overhaul plans, AA reports.
