The first half of 2024 has painted a sobering picture for Israeli venture capital, marking a period of unprecedented contraction in the sector. According to the recently released IVC - Gornitzky - KPMG Investors Report, the funds raised and investor activities have plummeted to levels not seen in years, continuing a troubling downward trend that began last year.
Read more: Israeli Venture Capital Faced Major Downturn in First Half of 2024
Israel's fiscal deficit has surged to a staggering 8.3 percent of the country's gross domestic product (GDP), equivalent to NIS 12.1 billion ($3.24 billion) as of August, driven by the government's relentless financial commitment to the prolonged war with Hamas and the ongoing conflict with Hezbollah. This sharp rise in the deficit, detailed in preliminary figures from the Finance Ministry, reflects the immense economic strain of maintaining national security amid heightened military engagements.
Read more: Israel's Deficit Hits 8.3% of GDP Amid Rising War Costs and Spending
The Palestinian economy in Judea and Samaria (commonly referred to as the West Bank by Palestinian leaders) has been a precarious one, largely dependent on Israel for stability, employment, and basic economic functions. However, since the eruption of the Gaza war in October 2023, this already fragile economy has entered a state of accelerated deterioration, putting immense pressure on the livelihoods of the Palestinian population. This crisis threatens to ignite widespread unrest as external actors such as Hamas and Iran exploit the situation through both financial and military support, intensifying their incitement against Israel and the Palestinian Authority (PA).
Read more: Gaza War Cripples Palestinian Economy in Judea & Samaria
In a shocking turn of events, the Israeli government has approved a colossal 500 million shekel budget cut that disproportionately targets the embattled northern communities, leaving mayors and residents furious. The Finance Ministry's promises to eventually restore the funds ring hollow, as local leaders and citizens alike express deep skepticism and frustration. "They are laundering funds that have not yet been given to us," say northern officials, who feel abandoned by their own government during a time of unprecedented crisis.
Read more: Northern Israel Outraged: Government Diverts Vital Funds Amid Hezbollah Threat
In an extraordinary move, El Al CEO Dina Ben Tal Ganancia has announced a groundbreaking initiative to drastically reduce airfare for Israeli travelers. As the world grapples with skyrocketing travel costs, Ben Tal Ganancia has emerged as a bold leader, determined to make international travel accessible to all Israelis at a time when most carriers have canceled service to Israel over the looming threat of Hezbollah and Iranian airstrikes.
Read more: El Al Agrees To Boost Travel Accessibility For Israelis With Low Cost "Bridge" Flights
