Jerusalem: Israel has incurred a loss of $51 billion due to the Gaza conflict. Israeli economic newspaper Calcalist has reported this while citing initial figures from the Treasury Department.
The report states that Israel, which is currently engaged in waging a war in Gaza, is bearing a cost of 200 billion shekels, which is approximately equivalent to $51 billion. This estimate of $51 billion accounts for about 10% of Israel’s GDP. The estimate considers the cost of the conflict to continue for 8 to 12 months. This estimate is made assuming that the conflict remains limited to Gaza and does not involve parties like Hezbollah in Lebanon, Iran, or Houthi rebels in Yemen.
According to the report, about half of this cost will be incurred in defense spending, which is roughly one billion shekels per day. The cost of a loss of revenue will amount to an additional 40 to 60 billion shekels, roughly between $10 billion to $15 billion. Furthermore, 17 to 20 billion shekels will be spent on compensating companies.
Similarly, 10 to 20 billion shekels will be spent on rehabilitation projects. Israel’s Finance Minister, Smotrich, mentioned that the Israeli government is preparing an economic relief package for those affected by the Israeli war and that this package will be more substantial than the one created during the COVID-19 pandemic.