This will probably come from two directions: a)  Through the influence of the financial markets. Even though the financial crisis hardly touched the Israeli financial system, it is having an impact. This is seen in price falls in the share market and a rise in the risk premium on the bond market.
We can thus expect a reduction in consumer demand due to the “wealth effect” – the effect of a fall in the value of households’ assets on their purchases – and a decline in real investments resulting from the increase in firms' costs of borrowing in the capital market.