Contact Us


About Us


This page is the English version of Almasirah Media Network website and it focuses on delivering all leading News and developments in Yemen, the Middle East and the world. In the eara of misinformation imposed by the main stream media in the Middle East and abroad, Almasirah Media Network strives towards promoting knowledge, principle values and justice, among all societies and cultures in the world

Economic Nightmare of ‘Israel’: Crisis, Technological Sector Collapse Amidst Rising Internal Divisions

Middle East: The financial deficit of the Zionist enemy has turned into a distressing and exhausting nightmare, causing numerous economic consequences and difficulties. It has also deepened internal divisions within the Zionist entity, both at the "governmental" level and in terms of general economic ties. 

 

Investor reactions, especially in the technology sector and other areas, have followed, along with an increase in company closures. All of this is due to the loss of confidence in the enemy's government's ability to face the current economic challenges, as well as the escalating threats from resistance factions and supporting fronts, as confirmed by Israeli media.

In parallel with the financial deficit and its consequences, the Zionist enemy continues to face another nightmare: the continuous decline in its developmental rating. This downgrade threatens to push Israel out of the list of major economies, making occupied Palestinian cities unattractive for investment. This, in itself, represents a significant blow that could destabilize the enemy for years, possibly marking the beginning of its downfall.

Partial paralysis of the "nerve" of the Zionist economy:

In this context, The Times of Israel recently published a report quoting a senior Zionist official who warned of the risks posed by the financial deficit and its serious implications for key sectors. The Israeli newspaper cited statements from the so-called Israeli Budget Commissioner, Yogev Gradus, who noted that the ongoing and rising deficit, in the absence of solutions, would lead to negative outcomes for the economy in general, particularly for investors.

The same sentiment was echoed by Clara Galtier, an international economics specialist at the French newspaper Le Figaro. She stated in her report that the continued deficit and crises would further lower Israel's developmental rating, which would deal a severe blow to investments.

She pointed out that after the closure of more than 46,000 companies since October of last year, the number is expected to reach 60,000 by the end of 2024. This would cost the enemy tens of billions of dollars, in addition to lingering effects that will plague it for many years to come.

In the context of the deterioration of Zionist trade due to Yemeni operations in the Red Sea, the technology sector is one of the most at risk of bankruptcy. Half of the companies operating in Israel are preparing to cease operations and leave the occupied Palestinian territories, according to a previous report by The Times of Israel. This would be a painful blow to the Zionist enemy, whose economy heavily relies on technology sector revenues, which account for 20% of its total resources and contribute 25% to the enemy's tax revenue, as well as 50% of its exports.

The Times of Israel further noted in a previous report that nearly 50% of local tech companies and startups are suffering from investment cancellations, attributing this to the ongoing war on Gaza, retaliatory strikes from Palestinian resistance, and other threats from the northern Lebanese front and the Iraqi front. On top of all this, Yemeni naval operations have crippled most vital sectors inside "Israel."

The newspaper continued, "All of this forces many of these companies to move their operations abroad, due to the loss of confidence in the government's ability to lead recovery and stimulate growth." The same was mentioned by an Israeli company tracking the tech ecosystem, called "Startup Nation Central."

The company conducted a field survey of a representative sample of 230 companies and 49 investors, which revealed that Israel's tech sector, the engine of growth, faces uncertainty about future funding. Nearly 49% of startups and companies surveyed reported some investment cancellations, while only 31% expressed confidence in their ability to raise critical capital next year. This will result in significant losses for the enemy's treasury, especially since technology sector revenues are substantial, with 24% of companies in this sector having already moved their operations out of the occupied Palestinian territories.

In this regard, Alfie Hasson, CEO of the company, confirmed that "the survey results reflect the lack of confidence among local tech companies in the government's ability to change the situation."

Hasson stated, "The prolonged conflict and accompanying uncertainty certainly have an impact, pushing companies to seriously consider what they should do next, such as relocating their operations outside of Israel. This flexibility also means that companies must do everything necessary to ensure they continue providing services."

He added, "About 80% of the startups in the survey and 74% of investors are concerned about the government's ability to lead the recovery, including the tech sector. We are witnessing a significant lack of confidence in what the government has done and will do, not only regarding technology policies and incentives but also regarding ending the conflict, returning hostages home, or passing a responsible budget."

He highlighted the significant dissatisfaction among capital owners with the policies of the enemy's government, stating that "the private sector is doing everything within its power, but it cannot do more. Meanwhile, the government needs to take specific actions and policies if we are to weather the storm in the long term."

Suicidal solutions expanding internal rifts:

Returning to The Times of Israel report on the financial deficit's consequences, the enemy's reliance on borrowing to cover expenses has resulted in high costs for paying loan interest, which has reached unprecedented levels. Gradus confirmed this in his remarks, saying, "The Israeli economy is facing higher interest costs when borrowing to finance the inflated military and civil expenses after the war on Gaza. This comes after Israel's credit rating was downgraded by the three major international credit rating agencies: Moody's, Fitch, and Standard & Poor's."

Hezbollah's strikes and the Yemeni and Iranian threats to retaliate have opened an economic front for the enemy. The Israeli newspaper confirmed that "there is an urgent need to increase the budget by about one billion dollars this year to finance the evacuation of civilians." This evacuation is a result of the expanding threats affecting most of the occupied Palestinian territories.

Israel's fear of the deficit's repercussions intensified after it exceeded 8.3% in August, amounting to over 43 billion dollars.

Because the financial deficit has turned into a nightmare, the enemy is now facing a wave of internal outrage, fueled by Smotrich's policies to address the deficit. He announced several economic measures, such as increasing the value-added tax, freezing social benefits and public sector salaries, and suspending tax benefits. These increases are expected to ignite settler dissatisfaction and heighten reverse migration.

In contrast, there is an inverse relationship within the Zionist economic system: the deficit continues to rise, along with spending. Multiple unaccounted-for expenses require coverage by the enemy, threatening to push the deficit to unprecedented levels, especially as borrowing has exceeded 77% of GDP, which could impact other economic pillars of the enemy.

In this context, a recent French report described the financial deficit as a "melodrama," citing the pressure of military spending on the Israeli economy amid the growing deficit.

The report, published by Le Figaro, noted that the so-called Israeli Finance Minister Bezalel Smotrich justified the deficit by saying, "We are in the longest and most expensive war in our history, ranging between 200 and 250 billion shekels (54 to 68 billion dollars)."

This deficit has caused many disputes and divisions within the Zionist entity, creating a rift in the enemy's economic and financial system. Le Figaro also highlighted this.

According to Le Figaro, the so-called head of bilateral chambers of commerce, Dan Catarivas, revealed that there is internal conflict and pressure from the "central bank," which is demanding clarification of financial policy.

He was quoted saying, "We need to cut spending and increase revenues, but we don't have the data. How are we going to achieve that? The Israeli public is dissatisfied with how this crisis is being managed." This underscores that economic and financial crises have compounded the enemy's suffering, adding to its ongoing military and security woes.

The French newspaper further emphasized the extent of the financial and economic divisions within the enemy, citing information from Le Figaro's international economics specialist, Clara Galtier. She reported that Israeli Finance Minister Smotrich asked members of his team to resign due to their constant rejection of his financial policies and their failure to understand the economic philosophy he follows, which is pushing disagreements to higher levels and exacerbating the economic suffering of the Zionist entity. This has led Smotrich to propose economic measures that are being rejected by members of Netanyahu's criminal government.

Given all these factors, it is clear that the economic crises plaguing the Zionist enemy are deepening its woes, opening additional doors to suffering despite generous U.S. and Western support. This highlights the effectiveness of resistance operations and support fronts, and also emphasizes the monumental impact of Gaza's legendary resilience in the face of the crumbling and deteriorating Zionist war machine, which is on the path to collapse.

 

Translated by Almasirah English website

#Israel #Economic_Crisis #GazaGenocide About 3 weeks
who are we

This page is the English version of Almasirah Media Network website and it focuses on delivering all leading News and developments in Yemen, the Middle East and the world. In the eara of misinformation imposed by the main stream media in the Middle East and abroad, Almasirah Media Network strives towards promoting knowledge, principle values and justice, among all societies and cultures in the world

copyright by Almasirah 2024 ©

Close gallery