Four points on the impact of the Israel-Hamas conflict

There remain enormous uncertainties about how the war between Israel and Hamas will develop. Israel's economy has proven resilient to conflicts in the past, but its military efforts in Gaza this time are likely to be much larger and this could impose significant costs on the economy. And the economic impact would be even larger if the war widens to the broader region. Looking further ahead, the conflict raises questions about the perceived risk of investing in Israel and the long-term outlook for the economy.