FT News Briefing Israel’s economy slumps
Feb 20, 2024
Israel's economy faces a staggering 20% contraction due to the ongoing Gaza conflict, leading to labor shortages and a downgrade in credit ratings. Meanwhile, Ukraine struggles with significant military setbacks, losing ground in a key town while grappling with weapon shortages. The discussion also shifts to OpenAI, questioning its ability to achieve superintelligence amidst mounting financial challenges and exploring revenue strategies like subscriptions and API access in the competitive AI landscape.
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Gaza War Impact
- Israel's economy shrank by almost 20% in the last quarter of 2023 due to the war in Gaza.
- The war caused government spending to increase while labor shortages and reservist deployments disrupted the economy.
Ukraine's Setback
- Ukraine retreated from Avdiivka, marking their first major battlefield loss since Bakhmut in May.
- Despite retaking 50% of lost territory, dwindling weapons and ammo raise concerns about Ukraine's military strength.
Avdiivka's Significance
- Avdiivka's loss is significant, both strategically and as a test for Ukraine's new commander, Oleksandr Syrskyi.
- Its strategic importance stems from being considered a gateway to Donetsk, a Russian-occupied city.