The affect the war in Israel has on the nation's economy.

 The war in Israel has caused many economists to believe that the Israeli economy will become slow, and that the nation's budget deficit will begin to soar as the nation spend more on its military.

Before the war Israel was had low debt, a current account surplus and high foreign exchange reserves, although growth had begun to slow amid high interest rates, rising inflation and expectations. Since the war the Israeli currency has been on a downward trend which has cause the central bank to ask for 30 billion in foreign exchange to support it. 

The Central bank then had to deal with the question of what they should do with the nations interest rate. The two options were to Reduce interest rates to help bolster the wartime economy or keep them elevated to support the war. The bank picked to keep them the same as they focus on "stabilizing the markets and reducing uncertainty.” Along with this the national debt that is also expected to rise as the increase in spending on defense. 

But as Israel continues to fight the fight against Hamas the government is trying to implement policies to help support its people. With focuses being include housing evacuees from combat zones. Banks and credit card companies, under the government’s direction, are providing repayment deferrals and other financial aid to help households and companies. It's going to be interesting to see how the nation's economy does over the next few months.