The substantial adjustment replaces a more optimistic forecast of -1.5% the American financial services company had previously put forth for the size of the Israeli economy. 

In a statement, JPMorgan acknowledged the challenge of assessing the impact of the ongoing war on Gaza on the Israeli GDP.

Additionally, JPMorgan made adjustments to its year-on-year output growth forecasts.

The 2023 forecast was revised down to 2.5% from the previous estimate of 3.2%.

In contrast, the 2024 forecast received a slight upward adjustment, increasing to 2.0% from the previous 1.9%, according to JPMorgan’s latest analysis.