Israel's economy has been severely impacted by nearly a year of war in Gaza, with poverty now affecting communities far from the conflict. The economy was already weakened by protests against Prime Minister Benjamin Netanyahu's judicial reforms before the Hamas attack on October 7. The war has caused a major blow to the economy, with the GDP shrinking by 21% in Q4 2023 and growth turning sluggish in Q2 2024. The three main ratings agencies have downgraded Israel's debt, and there are concerns that the war could stretch into 2025 and broaden to other fronts. Tourism, construction, and agriculture, which are not as insulated from the war as the tech and weapons industries, have been particularly affected, with construction work on pause and tourism plummeting. The war has also led to an increase in poverty, with more people in need of humanitarian services and food distribution.