The outflow of capital from Israel has increased seven-fold since last October.
According to a Monday report, economic analysts attribute the seven-fold increase in the amount of capital outflow from Israel to settlers’ concern about the future.
Settlers are very worried about the decline in the value of their savings and investments due to ongoing Gaza war or and the spill-over of the conflict in the region; they are taking their investments out of Israel!
Trading Economics, a financial consulting firm, announced that about $5.6 billion was withdrawn from Israel in 2023, which is seven times the amount that was transferred abroad in the six months before the start of the war.
The Israeli newspaper TheMarker also referred to the Israeli fear of attacks by the "Axis of Resistance" (Iran and its allies) on various fronts and the overall insecurity in Israel, warning that they are witnessing a deadly combination of a security crisis and a financial crisis at the same time.
LEBANON, TOO
The situation for Israel is likely to get far worse. Yesterday, Prime Minister Benjamin Netanyahu issued a directive to the Israeli Defense Force (IDF) instructing them to "prepare to change the situation in the north." It went on to tell IDF and Security Forces that the Israeli government needs to be able to safely return evacuees to their homes in the north.
This is widely viewed as a "heads-up" for a ground invasion, by Israel, into Lebanon.
If such a conflict erupts, wherein Israel is at war with Hezbollah in Lebanon, it is highly likely more Capital outflows will strike Israel, causing its' economy to almost implode. This seems especially true since Iran has now said if Israel invades Lebanon, Iran will supply all the weapons that Hezbollah needs, "and more."
