Increasing Global Economic Collapse, ‘Distress of Nations’;Israel’s virus-battered economy sees sharpest contraction in 45 years. Exceeding worst forecasts, CBS indicates GDP dropped by 28% in second quarter of 2020; Netanyahu brushes off estimates as Lapid warns of ‘disaster’.
By TOI STAFF August 16, 2020
Surpassing the most dire economic forecasts on the effects of the coronavirus pandemic, Israel’s gross domestic product plunged by 28.9 percent in the second quarter of 2020, as compared to the first quarter, in the worst economic downturn in over 40 years, according to an official estimate Sunday.
The projections by the Central Bureau of Statistics, which will likely be slightly adjusted over time, came as Prime Minister Benjamin Netanyahu announced the government would inject billions more into the economy to create jobs and bail out hotels.
The CBS figures also indicated that Israeli GDP slid by 7.8% compared to the second quarter of 2019. Private consumption shrunk by over 43%, due to the lockdown measures imposed throughout March and April, and imports dipped by over 41% as a result of the virus, the CBS said.
The recession marks the steepest contraction of Israel’s economy since at least 1975, and possibly ever, Hebrew-language media reports said.
Netanyahu, during a weekly cabinet meeting, downplayed the spiraling crisis and claimed the contraction was “almost the lowest in the world.”
“We just received very good economic news. The Central Bureau of Statistics published that the decline in our GDP in the second quarter of 2020 was 7.8%, which is half the decline in the European states; it is almost the lowest in the world. South Korea is ahead of us and maybe two or three other countries,” added Netanyahu.
“This is the result of the responsible policy that we have undertaken, which not only reduced the number of deaths in Israel, but also the magnitude of the blow to the Israeli economy,” he continued. “We will continue to work for your livelihoods, for our economic future and for your health.”
“In the cabinet, we have just approved an additional NIS 8.5 billion in incentives for our economy and to create jobs. I know that there is still great economic distress – we are working around the clock to make things easier for you, citizens of Israel,” he said.
The cabinet also approved a NIS 300 million ($88 million) aid package Sunday for hotels. Opposition leader Yair Lapid blasted Netanyahu over the economic projections, saying it proved the Likud leader was a “total failure” in managing the crisis.
“The serious contraction is not a matter of fate. All countries have the coronavirus. The discrepancy in the figures is a startling testament to Bibi’s [Netanyahu’s] total failure in managing the crisis. We are headed toward a disaster. People will lose their apartments, businesses and income,” said Lapid. “We need a small, efficient government that will handle the economic crisis.”
As the coronavirus outbreak hit Israel, the country was put into a lockdown in mid-March that all but brought the economy to a standstill. Unemployment rocketed from around 5% to 26%, and by April, over a million Israelis were unemployed.
Although the lockdown measures were mostly rolled back in recent months, unemployment is over 21%, according to the Employment Services figures last week, with nearly 882,000 people out of work.
The government has approved billions in aid for battered businesses and sent stimulus checks to most Israelis in efforts to revive the economy.
But the country also does not have a yearly state budget, amid a fight between Netanyahu and coalition partner Benny Gantz over whether to pass a one-year budget for 2020, or a two-year plan through 2021, as stipulated in their coalition agreement.
Earlier this month, the Finance Ministry said it may take up to five years for the Israeli economy to fully recover from the shock it received during the coronavirus pandemic.
In its forecast for 2020-2023, the ministry offered two distinct paths that the economy could take in the coming years, one in which the pandemic is brought under control, leading to a gradual improvement in Israelis’ economic circumstances, and another in which a rise in coronavirus deaths requires the reimposition of economic restrictions, hampering recover
Should the pandemic stay largely under control, allowing for the economy to revive, the ministry projected the GDP will shrink by 5.9% in 2020, followed by 5.7% growth the following year. In this scenario, unemployment would remain around 9.7% at the end of the year, it projected.
However, in the event of an exacerbation of the public health crisis causing increased economic restrictions, unemployment would rise to 15% by the end of the year and the GDP would contract by 7.2% in 2020 and only rise 2.2% in 2021.
In either case, a full economic recovery would probably take around half a decade, and certainly will not occur before 2023.
Israel has seen over 92,000 COVID-19 cases and 679 deaths.
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In His Service,
Night Watchman Ministries
Make Your Decision for Christ NOW!!!!!!! Time is Up!!!!!!!
Jesus Christ’s Offer of Salvation:
The ABCs of Salvation through Jesus Christ (the Lamb)
A. Admit/Acknowledge/Accept that you are sinner. Ask God’s forgiveness and repent of your sins.
. . . “For all have sinned, and come short of the glory of God.” (Romans 3:23).
. . . “As it is written, There is none righteous, no, not one.” (Romans 3:10).
. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us.” (1 John 1:8).
B. Believe Jesus is Lord. Believe that Jesus Christ is who He claimed to be; that He was both fully God and fully man and that we are saved through His death, burial, and resurrection. Put your trust in Him as your only hope of salvation. Become a son or daughter of God by receiving Christ.
. . . “That whosoever believeth in him should not perish, but have eternal life. For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. For God sent not his son into the world to condemn the world; but that the world through him might be saved. (John 3:15-17). For whosoever shall call upon the name of the Lord shall be saved.” (Romans 10:13).
C. Call upon His name, Confess with your heart and with your lips that Jesus is your Lord and Savior.
. . . “That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.” (Romans 10:9-10).
. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us. If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness. If we say that we have not sinned, we make him a liar, and his word is not in us.” (John 1:8-10).
. . . “And he is the propitiation for our sins: and not for ours only, but also for the sins of the whole world. (John 2:2).
. . . “In this was manifested the love of god toward us, because that God sent his only begotten Son into the world, that we might live through him. And we have seen and do testify that the Father sent the Son to be the Saviour of the world. Whosoever shall confess that Jesus is the Son of God, God dwelleth in him, and he in God.” (1 John 4:9, 14-15).
. . . “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.” (Romans 5:8-10).
. . . “For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord.” (Romans 6:23).
. . . “Jesus saith unto them, I am the way, the truth, and the life, no man cometh unto the Father, but by me.” (John 14:6).
. . . “For I am not ashamed of the gospel of Christ: for it is the power of God unto salvation to everyone that believeth.” (Romans 1:16).
. . . “Neither is there salvation in any other: for there is none other name under heaven given among men, whereby we must be saved.” (Acts: 4:12).
. . . “Who will have all men to be saved, and to come unto the knowledge of the truth for there is one God, and one mediator between God and men, the man Christ Jesus.” (1 Timothy 2:4-6).
. . . “For God did not appoint us to suffer wrath but to receive salvation through our Lord Jesus Christ.” (1 Thessalonians 5:9).
. . . “But as many as received him, to them gave the power to become the sons of God, even to them that believe on his name.” (John 1:12).
True Church / Bride of Christ Spared from God’s Wrath:
Romans 5:8-10. “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.”
Romans 12:19. Dearly beloved, avenge not yourselves, but rather give place unto wrath: for it is written, Vengeance is mine; I will repay, saith the Lord.
1 Thessalonians 1:10. And to wait for his Son from heaven, whom he raised from the dead, even Jesus, which delivered us from the wrath to come.
1 Thessalonians 5:9. For God hath not appointed us to wrath, but to obtain salvation by our Lord Jesus Christ,
Romans 8:35. Who shall separate us from the love of Christ? shall tribulation, or distress, or persecution, or famine, or nakedness, or peril, or sword?
Jeremiah 30:7. Alas! for that day is great, so that none is like it: it is even the time of Jacob’s trouble, but he shall be saved out of it.
Revelation 3:10 Because thou hast kept the word of my patience, I also will keep thee from the hour of temptation, which shall come upon all the world, to try them that dwell upon the earth.
Categories: Economic Collapse