JERUSALEM, March 11 (Xinhua) -- Israel's Finance Ministry said late Tuesday it had cut its 2026 economic growth forecast to 4.7 percent from 5.2 percent, citing the impact of its ongoing strikes on Iran.
The ministry said the revised outlook reflects disruptions to business activity caused by the large-scale mobilization of reserve forces and temporary shutdowns in parts of the economy.
It also pointed to a short-term drop in private consumption and rising geopolitical uncertainty weighing on investment and foreign trade.
Separately, the government approved several measures overnight within the 2026 budget framework to address the security situation. These include raising the deficit ceiling to 5.1 percent of gross domestic product from 3.9 percent.
It also approved an additional 32 billion shekels (about 10.3 billion) in defense spending and set aside a further 12.8 billion shekels if the war continues at high intensity. ■
