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flag Israel's wars against Hamas and Hezbollah caused a 5.6% economic contraction and led to Moody's downgrading its credit rating.

flag Israel's wars against Hamas and Hezbollah have drastically increased military spending from $1.8 billion to $4.7 billion monthly, resulting in a 5.6% economic contraction post-conflict onset. flag While the economy has shown resilience with some recovery, Moody's has downgraded Israel's credit rating, raising borrowing costs and raising concerns about future public service cuts. flag The ongoing conflict poses significant long-term risks to Israel's economic stability.

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