Israel’s economy is expected to grow 2 per cent in 2023, down from a prior estimate of 2.7pc, the Finance Ministry said citing the effects of Israel’s bombardment of Gaza, Reuters reports.

For 2024, the ministry projected growth of 1.6pc as its main estimate based on a war that will continue through the year but with the most intense fighting ending in the first quarter and largely contained to the southern border with Gaza.

But a more rapid recovery from the war that would end in early 2024 could lead to growth of 2.2pc while a war that continues into 2025 and a slower recovery would mean stagnant growth of just 0.2pc.