Samuel Werberg, the Regional Spokesperson for the U.S. State Department, has commended Egypt’s pivotal role in the humanitarian ceasefire negotiations in Gaza.
He highlighted that Cairo has been, and continues to be, a significant and central player in the negotiations involving the release of hostages and detainees, as well as recent developments in the Gaza Strip.
Werberg expressed hope for the release of all detainees in Gaza, reiterating Washington’s welcome of the two-day extension of the ceasefire in the region.
In his statement to “Cairo News,” the Regional Spokesperson for the U.S. State Department revealed that some Americans are still being held in the Gaza Strip.
He noted that the humanitarian truce in Gaza has facilitated the release of detainees and the entry of aid.
Werberg urged taking advantage of the ceasefire in Gaza to maximize the influx of humanitarian aid.
Notably, Bloomberg reported that the Israeli Central Bank presented its most detailed assessment yet of the economic repercussions of Israel’s war on the Gaza Strip, choosing to maintain interest rates to stabilize markets.
The Central Bank’s updated forecasts estimate the conflict’s total impact on Israel at 198 billion shekels, approximately $53 billion, with defense spending accounting for over half this amount.
An Israeli financial consultancy, Leader Capital Markets, estimated Israel’s losses from the Gaza war at around $48 billion for the current and next year.
The Ministry of Finance indicated that the war costs the economy nearly $270 million daily.
The Central Bank’s research team has lowered its expectations for Israel’s economic growth, now anticipating a GDP growth of 2% this year and next, compared to previous estimates of 2.3% in 2023 and 2.8% in 2024.
The Finance Ministry shares similar GDP projections for this year but expects slightly weaker future gains.
According to Bloomberg, Israeli Central Bank Governor Amir Yaron warned that the financial impacts of the war would persist in the medium term.
He urged the government to exercise caution while preparing a new budget, emphasizing the need to maintain a responsible fiscal framework alongside addressing the war-created needs, even in emergency situations.
He also stressed the importance of reducing long-term new expenditures by the government.
There is currently a broad debate within Israel regarding anticipated changes in its current budget.
The Central Bank officials have criticized the government’s reluctance to cancel planned spending on religious programs and settlements in the occupied West Bank while under pressure to fund the war effort.
