JERUSALEM, Oct. 29 (Xinhua) -- The Israeli Finance Ministry on Tuesday significantly lowered the growth forecast for the country's economy to 0.4 percent in 2024, compared to the previous forecast of 1.9 percent given in June this year.

According to a review issued by the ministry, the growth forecast for the Israeli economy for 2025 was also reduced from 4.6 to 4.3 percent.

The ministry explained that the forecast changes were made mainly due to the ground entry of the Israeli army into southern Lebanon last month, which increased the intensity, scope, and duration of the conflict in the ministry's updated scenario, it said.

This scenario assumes a continuation of intense fighting throughout the current fourth quarter and increased recruitment of reserve soldiers, added the ministry.

Earlier this month, Israel's central bank and the International Monetary Fund also lowered Israel's growth forecasts due to the security situation.

The ministry's inflation forecast for 2024 was raised slightly by 0.1 percentage points to 3.1 percent, above the upper limit of the government's target ranging from 1 to 3 percent.

Israel's trade forecasts were reversed, with a forecast of a 7 percent year-on-year decrease in exports and a 5.9 percent decrease in imports, compared to the previous forecasts of 2.9 and 2.4 percent year-on-year increases, respectively. Enditem

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