Goldman Sachs: Israel's Economy Has Deviated Significantly, but Ceasefire Could Spark Major Recovery

Economic Impact of the War: Israel's economy has fallen approximately 7% below its expected growth trend due to the ongoing conflict with Hamas, but a significant recovery is anticipated if hostilities do not resume.

Ceasefire Predictions: Economists from Goldman Sachs have refrained from predicting the durability of the ceasefire, although they note that prediction markets suggest a two-thirds likelihood that it will hold.

Hostage Situation: On Tuesday, Israel confirmed the identification of a body belonging to a hostage released by Hamas, indicating ongoing complexities in the conflict.

Hamas's Commitment: Hamas has expressed a commitment to ending the war, which could influence future negotiations and the overall situation in the region.