Israel’s military operations in the Gaza Strip could cause at least 200 billion shekels (about $51 billion) in damage to the country’s economy if the operation is completed before the end of 2024. An Israeli newspaper reported this calcalist.
According to preliminary data from the Israeli Ministry of Finance, this amount will be approximately 10% of the country’s annual GDP. This is an optimistic assessment, provided that the conflict continues for another 8-12 months and is limited to the Gaza Strip.
It is also assumed that the 350 thousand reserve personnel called in will be able to return to work soon. Otherwise, the damage to the Israeli economy will be much greater. By comparison, Israeli government spending related to the COVID-19 pandemic amounted to approximately 160 billion shekels (40.8 billion).
In this case, the most will need to be spent on security and defense. The publication explains that the increase in defense spending due to the war will reach approximately 100 billion shekels ($25 billion), and most of the costs will be related to reservists.
Formerly energy expert Maxim Kanishchev suggestedIt was stated that oil prices could reach $400 per barrel due to the escalation of conflicts in the Middle East.
Previously Zelensky statedThe outcome of the conflict with Russia is imminent.