JERUSALEM, Jan 4 Reuters Israel39;s wartime economy will get a muchawaited boost as the military gradually releases reservists fighting in the Gaza Strip so they can return to their jobs and jumpstart softening growth.

Since the Oct. 7 attacks by Palestinian militant group Hamas, more than 300,000 Israelis were drafted to reserve duty many coming from the globallyimportant hightech sector leading to labour shortages and a gloomy national mood that hurt consumer spending and is expected to dent economic growth.

After nearly three months of intense air bombardment and a massive ground incursion, Israeli leaders have hinted that the war is entering a new phase, with a shift towards more targeted operations aimed at eliminating the Islamist group that rules Gaza and rescuing Israeli hostages.

The military accordingly is adjusting deployment plans for its forces in Gaza and other hot spots, first and foremost by starting to send reservists home at least for a while.

It declined to share specifics about its number of forces, but said the move will significantly alleviate economic burdens and enable them to gather strength for upcoming activities in the next year, as the fighting will persist, and their services will still be needed.

Prior to the war, Israel was headed for solid economic growth of 3.4 in 2023 and 3 in 2024, according to the central bank. Now, the economy is headed for a fourthquarter contraction and the Bank of Israel sees 2 growth this year and next, or…