Defense Budget Called Next Government's Main Economic Test

Bank Hapoalim CEO Yadin Antebi told EY's annual real estate conference that the next Israeli government's central economic challenge will be controlling the defense budget, because its size will heavily shape Israelis' standard of living in the coming years. Antebi described Israel as entering the October 7 war from a strong macroeconomic starting point, with low unemployment, low inflation and low leverage, and said businesses recovered quickly under wartime conditions. He warned, however, that the macro picture is less favorable than several months ago. Israel's task is to fund victory and deterrence while protecting growth, housing and family living standards.