"Businesses and households in the north have undoubtedly suffered a hard blow, but not a fatal one. The north will recover and return to prosperity, but the recovery process will be long," Bank Leumi EVP and head of banking division Eyal Ben-Haim told the "Return to the North" conference today.
Ben-Haim said that the north will recover in the coming years. "We at Bank Leumi expect that 2025 may be the year of the great rebound, in the north in particular and in the Israeli economy in general. Of course, as the security situation stabilizes."
He said, "According to our economists' forecasts, the shekel is expected to strengthen this year. Convergence to the inflation target is expected, which will subsequently lead to a cut in interest rates. In the longer term, we expect growth at a rate exceeding the economy's potential, as part of the post-war reconstruction and recovery process.
"I believe that the north will once again be an attractive place for business, housing and quality of life. Just like the Galilion Hotel that is hosting us today and is finally returning to activity. Even in the economic recovery process, we at Bank Leumi are here to be by the side of business owners."
"The recovery can already be seen"
Ben-Haim illustrated his message with the story of a small importer of interior doors from Kiryat Bialik, whose business was severely damaged by a missile strike. He said that the bank's Haifa branch helped him and supported him as he reopened his business.
"Thousands of small businesses were damaged during the war. Farmers and businesses whose employees were evacuated or drafted through emergency orders continued to work. Industrial plants maintained continuity and business continuity as much as possible. Business owners who evacuated themselves reinvented themselves. This is extraordinary resilience," said Ben-Haim, adding that his bank was the first to reopen its branch in Kiryat Shmona, just hours after the ceasefire came into effect.
"The recovery can already be seen. We are seeing growing interest in key sectors of the economy, for example in real estate. Yes, both in the north and even during the war," Ben-Haim concluded, expressing confidence that the hundreds and thousands of northern businesses will recover from the great crisis of the war and return to prosper.
Full disclosure: The conference was organized together with Bank Leumi and sponsored by Strauss and Dorel
Published by Globes, Israel business news - en.globes.co.il - on January 22, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.