Month of war leaves Israel with tricky economic outlook


  • World
  • Wednesday, 13 Aug 2014

JERUSALEM (Reuters) - Israel's month-long war with Hamas in Gaza has added fuel to a Palestinian boycott movement and may damage investor sentiment towards Israel at the margins, even if the $250 billion (149.50 billion British pound) hi-tech economy looks set to emerge largely unscathed.

Analysts expect the war to have dented growth and cost several billion dollars - foreign tourism alone fell by 25 percent in July. But Israel has weathered such storms in the past and tends to rebound within a few months, with output expanding at around 3-4 percent a year in recent years.

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