Third lockdown caused less economic damage than previous ones

Financial analyst Dudi Reznik thinks that the economy is has suffered less under this lockdown than the ones before it.

Arutz Sheva Staff ,

police enforce lockdown
police enforce lockdown
Police spokesperson

Dudi Reznik, a strategist at Leumi Capital Markets, estimates in a conversation with Arutz Sheva that the current lockdown has a significantly smaller impact on the Israeli economy than its predecessors.

"I think this lockdown has a lower impact than previous lockdowns. This week, data from the Central Bureau of Statistics for January were published and indicated that unemployment rates are significantly lower than the first and second lockdowns," Resnik says.

He said, "I assume we will see a decline in the activity and performance of the local economy, but it will be more moderate than what we have seen in the previous two lockdowns. Of course, the hope is that the economy will return to normal soon."

Resnik notes that the Israeli economy will be measured by its resilience. "I think the current lockdown is accounted for in the Bank of Israel's forecasts. According to these forecasts, if the lockdown ends soon, it will have only a marginal effect on the growth and debt ratio of the country. The aspiration and hope is that following Israel's rapid and widespread vaccination, the economy will recover in short order. If this does not happen for one reason or another, there will be consequences. "

Regarding the Biden administration's plans to cure the American economy, he said “I think right now President Biden will want to promote a process of fiscal expansion in which the administration injects money into the economy. He's talking about a two-trillion-dollar grandiose plan but it's not clear which of them will be approved by Congress and the Senate. Getting either one approved will help the American economy. "

"The Americans have also heard good news in recent days from Johnson & Johnson whose vaccine has been a success. It is a vaccine that requires only one dose, is easy to transport and as long as the US is wise enough to get everyone vaccinated as quickly as possible, the American economy is on the track to recover, " Resnik concludes.