Capital flight from Israel increasing, media reports

Israeli media outlets have reported a significant jump in capital flight from the occupation state for investment abroad, rising 62 per cent since 7 October 2023.

The Israeli newspaper Calcalist, which specialises in economic affairs, stated yesterday that “the economic term ‘capital flight’ has far-reaching implications for the economy and must be prevented at all costs, as it could lead to economic collapse or crisis.”

The newspaper added that since the formation of the far-right government led by Prime Minister Benjamin Netanyahu, Bezalel Smotrich and Itamar Ben Gvir, there have been increasing signs that the Israeli economy is already suffering from an outflow of capital abroad, a phenomenon that has only worsened since October last year.

It explained that capital flight occurs in a large, rapid and sometimes undocumented manner, driven by financial instability, uncertainty, or increasing political, geopolitical, economic, or social risks, which typically result in a loss of confidence in the Zionist state and push investors to seek opportunities abroad.

A report published last month by the Economist also revealed that “Israeli banks are suffering from capital flight.”

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