World
War with Lebanon Pushes Israel's Economy to the Brink of Collapse
The war with Lebanon is pushing Israel's economy to the brink of collapse, as the budget deficit surges to 8.6% of GDP and the shekel depreciates. Key sectors like high-tech and tourism are severely affected, while rising military costs force cuts in social spending. International credit downgrades make borrowing harder, leaving Israelis grappling with inflation, unemployment, and a declining quality of life.