JPMorgan sharply lowered its 2023 fourth quarter GDP forecast for Israel to an 11% contraction from the previous quarter, replacing its previous -1.5% estimate.
"Gauging the impact of the war on Israel’s economy remains difficult both due to still very high uncertainty about the scale and duration of the conflict and the lack of high-frequency data at hand," said JPMorgan in a research note.
The 2023 year-on-year output growth forecast was cut to 2.5% from the previous 3.2%, while the 2024 forecast was bumped slightly to 2.0% from 1.9%, JPMorgan said.
