The spread of the coronavirus epidemic may reduce Israel's gross domestic product by a range of 0.25% to 1% or 3.6-14 billion shekels ($1-$4 billion), the Finance Ministry said Thursday.
Finance Minister Moshe Kahlon called a special meeting to discuss the main scenarios of the coronavirus' effects on the global and local economy.
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The ministry's scenarios do not include the spread of the COVID-19 virus reaching the level of a global pandemic, which the World Health Organization believes can be stopped, not does it include a nightmare scenario of a large-scale outbreak in Israel.
The meeting included Bank of Israel Governor Prof. Amir Yaron and all senior department heads in the Treasury: Deputy Finance Minister MK Yitzhak Cohen, Chief Economist Shira Greenberg, Budget Director Shaul Meridor, Accountant General Rony Hizkiyahu, Wages Director Kobi Bar-Nathan, legal advisor Asi Messing, and the ministry's Director General Shai Babad.
Israel Tax Authority Director Eran Yaacov, National Economic Council Chairman Prof. Avi Simhon and Israel Securities Authority Chief Economist Ilan Gildin also attended the meeting.
According to financial daily Globes, Greenberg said at the meeting that Israel's economic activity has not been damaged on the macro level at this time, but that reports from companies about the potential effect on their activity, and in some cases actual damage, were accumulating and should be a cause for concern.
Yaron noted that if the crisis is prolonged the effect would be more substantial, and that it was difficult to estimate its extent at this stage.
It is believed, however, that exports to China, which focus mainly on technology services, are unlikely to be affected.
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