Ecomnews Med The Mediterranean News on Economy

• #IRAN
• #ISRAEL
• #EconomicAnalysis
• #Economy
• #War

The economic consequences of the war between Israel and Iran are uncertain and will depend on the intensity and duration of military operations. Initially, the impact on the Middle Eastern economies appears to be mixed. Three countries are directly affected: Iran, Israel, and the Palestinian Territories (PT). The other economies (Egypt, Jordan, Iraq, Lebanon, and Syria), which are fragile to varying degrees and already disrupted since October 7, 2023, could be indirectly affected.

• #EGYPT
• #Budget
• #Economy
• #Growth

On March 26, 2025, the Egyptian Council of Ministers approved the draft state budget for the 2025/26 fiscal year (July to June), which will soon be submitted to the House of Representatives for adoption, expected in the coming weeks. For the first time, this budget is part of a multi-year framework covering the next three fiscal years.

• #ISRAEL
• #Economy
• #War

The expansion of military operations in the Gaza Strip could represent an additional cost of around 15 billion Israeli newcomers (4.1 billion US dollars). The defense budget of 120 billion Israeli newcomers for 2025, of which 17 billion Israeli newcomers are intended to cover reserve service needs, could prove insufficient.

• #PALESTINE
• #EconomicAnalysis
• #Economy
• #Politics

During a presentation on the economic and financial situation in the Palestinian Territories on May 12, 2025, the World Bank warned of the immense challenges facing the region, nearly eighteen months after the outbreak of the war in Gaza. In 2024, Palestinian GDP fell by 27%, marking the worst economic contraction in a generation. Gaza was particularly hard hit, with an 83% reduction in GDP, while the West Bank recorded a 17% decline.

• #MiddleEast
• #BenjaminNetanyahu
• #Economy
• #Trump
• #USA

Middle Eastern countries are exposed to the Trump administration's recent foreign policy announcements and decisions in very different ways. Most scenarios exist in the region: a country extremely close politically to the United States; several countries benefiting from recurring financial support that could be weakened by a potential US withdrawal; and finally, a country considered an enemy by the United States, whose antagonistic nature could be reinforced by the Trump II administration.

• #ISRAEL
• #Budget
• #Defense
• #Security

The Knesset adopted the 2025 budget at the end of March. After three months without a budget and just days before the March 31 deadline for adoption, the Knesset passed the 2025 budget on March 25 by a majority of 66 to 52, thus ensuring the continuation of the governing coalition. The budget amounts to NIS 756 billion (EUR 180 billion), including NIS 619.6 billion excluding debt service, a 21% increase compared to 2024, bringing it to its highest level in history. It targets a budget deficit of 4.9% of GDP.

• #LEBANON
• #Economy
• #IMF

Prime Minister Nawaf Salam formed a government on February 8th, opening new prospects for Lebanon's economic recovery. This new government will need to seize the momentum to quickly initiate a first series of structural reforms to kick-start the country's economic recovery, restore the credibility of the Lebanese administration, and pave the way for a conference to support Lebanon. What are they? And within what timeframe?

• #LEBANON
• #Development
• #Economy
• #GDP
• #IMF

Following its mission to the country, the IMF indicated its willingness to cooperate with the authorities in establishing a comprehensive economic reform plan based on sustainable public finance and debt trajectories and a restructuring of the financial sector. Furthermore, development assistance in grant form is expected to reach $1.6 billion in 2024, or 7% of GDP.

• #ISRAEL
• #Money
• #War

A strong recovery is expected in 2025, with the government forecasting growth of 4.6%. The Bank of Israel (BOI) has kept its key interest rate unchanged at 4.5% since January 2024, making Israeli financial assets attractive to investors and helping to contain inflation, strengthening confidence in the local currency.