Israel has admitted to financial losses amounting to $67 billion due to its ongoing military invasion in the Gaza Strip. The losses include $34 billion in direct military costs and $40 billion in broader economic impacts, marking the largest financial setback in Israel’s history.
In addition to the military expenditures, the war has severely affected the civilian economy. Approximately 60,000 businesses have closed, and tourism has plummeted by 70%, leading to losses of over $5 billion. The construction sector also saw significant damage, with $4 billion in losses and the closure of more than 70 companies. Economic data also revealed that a third of Israel’s population now lives below the poverty line, while a quarter suffers from food insecurity.
These financial losses were disclosed just hours before a ceasefire agreement with Gaza was reached. The Israeli Ministry of Finance reported a budget deficit of 19.2 billion shekels ($5.2 billion) in December alone, due to increased military spending. Estimates suggest the total cost of the war could reach around 250 billion shekels ($67.57 billion) by the end of 2024.
This assessment highlights the broad economic and social consequences of the conflict, including long-term impacts on military and civilian infrastructure.
