Political and public discourse surrounding constitutional reform and its implications for the Israeli economy

The Israeli government’s 2023 initiatives to accelerate constitutional reform sparked widespread debate across the media, political circles, and society, exacerbating divisions within Israeli society. This study explores the impact of this contentious debate on Israel’s economic indicators throughout 2023 and its implications for the country’s attractiveness to international economic institutions and foreign investors. The research methodology involves two primary approaches. First, examination of primary policy documents such as legislative proposals, government reports, and parliamentary committee protocols. Second, presentation and analysis of diverse economic indicators pertinent to the Israeli economy. The conclusions indicate that the promotion of reform-related legislation increased the level of uncertainty ascribed to the Israeli economy, manifested in a downgrading of its credit ratings, and deceleration of imports and of the inflow of foreign direct investments in 2023. Moreover, the Israel’s advanced industry experienced a decline in capital raised and in investments in local high-tech companies.