Netanyahu Clarifies Isolation Remarks, Reaffirms Strength of Israeli Economy By The Media Line Staff Prime Minister Benjamin Netanyahu on Tuesday sought to clarify remarks he made a day earlier about Israel’s growing diplomatic and economic isolation, stressing that the country’s economy remains strong and attractive to investors. At a press conference in Jerusalem, Netanyahu said […]
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The Media Line: Netanyahu Clarifies Isolation Remarks, Reaffirms Strength of Israeli Economy
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Netanyahu Clarifies Isolation Remarks, Reaffirms Strength of Israeli Economy
By The Media Line Staff
Prime Minister Benjamin Netanyahu on Tuesday sought to clarify remarks he made a day earlier about Israel’s growing diplomatic and economic isolation, stressing that the country’s economy remains strong and attractive to investors.
At a press conference in Jerusalem, Netanyahu said that his comments on Monday had been misinterpreted. “There was a misunderstanding that supposedly shook the stock markets,” he explained. “The markets understood what I said.” Speaking in English, he urged global investors to continue channeling funds into the country. “The goal is to turn Israel into a free economy,” he said. Netanyahu added that Israel’s stock market is healthy, unemployment is at a historic low, and housing prices are declining. “Our economy is very strong. It has amazed the entire world, and even more so in the last two years,” he said.
The clarifications came after his Monday address, in which Netanyahu acknowledged that Israel is entering a period of international isolation as the war in Gaza continues. “Israel is in a sort of isolation,” he told the Finance Ministry conference. Warning of European calls for arms embargoes, he said that Israel may have to prepare for sanctions that could restrict its defense sector. “We will increasingly need to adapt to an economy with autarkic characteristics,” he said. “It’s a word I hate. I am a believer in the free market, but we may find ourselves in a situation where our arms industries are blocked. We will need to develop arms industries here — not only research and development, but also the ability to produce what we need.”
Netanyahu linked these challenges to demographic shifts in Europe and anti-Israel campaigns on digital platforms, saying they are fueling political efforts against Israel. He argued the country must combine economic dynamism with military independence: “We must be Athens and Sparta combined.”
Opposition leaders seized on his Monday remarks, with Yair Lapid calling them “crazy” and former general Gadi Eisenkot accusing the government of isolating Israel while neglecting hostages. On Tuesday, Finance Minister Bezalel Smotrich defended the economy, while Netanyahu appeared alongside US Secretary of State Marco Rubio, who reaffirmed Washington’s partnership with Israel.