Israeli attacks on Gaza, continuing since October 7, have caused the country’s economy to stagnate and the value of the local currency to fall. It is stated that if the conflicts continue, it will cause a serious contraction in the economy.
The cost to Israel amounts to more than $17 billion
Asher Blass, former chief economist at the Central Bank of Israel, stated that economic growth in Israel will be negatively affected by the conflicts, and that the extent of the decline will depend on the duration of the conflicts.
Jay Bitor, chief economist at Sagot Investments “The conflict involving Israel is expected to continue for a long time and seriously harm demand in the economy” He said.
The cost of the conflicts, which they estimate will last 60 days, will exceed $17 billion, said Alex Zabczynski, chief economist at Mitaf investment firm in Tel Aviv.
The amount includes the mobilization of ammunition and reservists, the cost of direct hostilities, compensation for material damage, aid payments to companies and families, and compensation for the unemployed. This amount is equivalent to 3.5% of the total economic output. It is estimated that the cost of the conflicts that began on October 7 will be higher than the costs of previous conflicts between the two countries.
“Israeli companies are in a difficult situation”
The Financial Times reported on Israel’s deteriorating economic performance. “Israeli companies are in trouble because of the war that is hitting the economy.” He published a newspaper article entitled:
Sending 350,000 people to the Gaza Strip and the Lebanese border for reserve military service in the country also had a negative impact on the workforce.
Israeli Finance Minister Bezalel Smotrich also announced a package to compensate companies for their losses.
The Bank of Israel allocated $2.6 billion to small businesses.
“One-third of companies are closed”
The Financial Times found that two-thirds of companies in the areas closest to Gaza either closed operations or reduced their size, with more than half reporting revenue losses of 50 percent or more. Municipalities closed many construction sites.
“Come to your senses, Netanyahu.”
Last week, a group of 300 prominent Israeli economists called on Netanyahu and Smotrich to “come to their senses.”
In an open letter, “Israel’s powerful blow requires a fundamental shift in national priorities and a broad redirection of funds to address war damage, assist victims, and rehabilitate the economy.” They said.
Netanyahu said on Thursday that the support package is “just the beginning.”
But Eugene Kandel, president of the Emerging Nation Policy Institute, a think tank, and one of the signatories of the economists’ letter, said the government “He has not yet shown that he understands the seriousness of the situation.” Tell.
Gaza is on fire: More than two and a half million civilians are in the grip of death at the hands of the terrorist state of Israel
Striking details in the photo of Fidan and Blinken: It has become a popular topic on social media
Blinken’s first statement after the meeting with Fidan: You will see in the coming days
(tags for translation) Israel