IMF warns against Israel’s judicial reform

June 15, 2023

IMF report noted that the investment could be affected by the relocation of hi-tech firms which conduct cross-border activities…reports Asian Lite News

A report by the International Monetary Fund (IMF) cautioned that the uncertainty caused by the Israeli government-proposed judicial reform could prompt Israeli hi-tech companies to relocate abroad.

The report issued on Thursday said that if a large enough number of hi-tech firms relocate, Israel’s strong economic growth potential could be jeopardized, as the capital stock and labor market productivity could be permanently damaged.

It added that without a durable and politically sustainable solution, the high levels of uncertainty could significantly increase the price of risk in the economy. Consequently, financial conditions would be tightened and consumption and investment ultimately slowed, Xinhua news agency reported.

It also noted that the investment could be affected by the relocation of hi-tech firms which conduct cross-border activities, rely on international financing, and employ skilled and internationally mobile workers.

The report expected Israel’s economic growth to slow to about 2.5 per cent this year as households purchasing power moderates and firms rein in investment.

ALSO READ: Palestine slams Israeli plan to divide worshipping zone in Jerusalem

Previous Story

Peak XV to empower Indian startups

Next Story

India ready to collaborate with G20 countries, says Tomar

Latest from -Top News

Iran Warn E3

Iran warns France, Germany, and Britain of “strong reaction” if Tehran’s rights violated Iran’s Foreign Minister Seyed Abbas Araghchi warned France, Germany,

Eid Festivities in the UAE

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan performed the Eid Al-Adha prayer this morning at Sheikh Zayed Grand Mosque

Rome Marches For Gaza

The protest, marked by a sea of rainbow, Palestinian, and political party flags, moved peacefully through central Rome…reports Asian Lite News Tens

Kyiv Awaits Russian Retaliation

A Western diplomatic source confirmed Russia’s response had begun but warned it would likely intensify…reports Asian Lite News The United States believes

Don't Miss