Israel’s GDP experienced a nearly 20% contraction in Q4 2023 due to the Gaza war, far exceeding analyst expectations of around a 10% decrease. The country’s mobilization of 300,000 military reservists for deployment in Gaza and along the northern border with Hezbollah in Lebanon significantly impacted its high-tech economy. Additionally, the daily influx of over 150,000 Palestinian workers from the occupied West Bank, predominantly in construction and agriculture, was disrupted.