Tel Aviv: The Israeli economy is experiencing adverse effects due to the impact of the war, as Israel’s war costs have reached up to $17 billion within three weeks. The economic repercussions on Israel are severe due to the war frenzy following Hamas’s attacks.
According to reports, since the October 7 attacks, all sectors of Israel, including construction, technology, agriculture, and textile workers, have been significantly affected by a shortage of workers. Approximately 80% of projects under construction in Israel are frozen.
Reports also suggest that Israel’s GDP loss may reach up to 3% by the end of the current year. Expected GDP loss was around 1.5% before the Gaza conflict. According to Israeli experts, the required amount to recover losses could reach $12.5 billion in the last two months of the year, which is more than non-governmental estimates of the Bank of Israel and the Treasury.
It should be noted that Israel’s $500 billion economy is one of the largest economies in the Middle East.