Israeli economy is losing $2.4 billion a month as a result of the war on Gaza
The Israeli Ministry of Finance estimated that the monthly loss resulting from the war on the Gaza Strip amounts to about $2.4 billion.
On Monday, the Israeli economic newspaper The Marker quoted the Ministry of Finance as expecting the GDP loss for the current year to reach 1.4%.
This means that each month of war may lead to a loss in the GDP of about 9 billion shekels ($2.4 billion), noting that this will lead to a stagnation in the per capita share of GDP.
This also means that the pace of economic growth this year will reach only 2%, noting that previous expectations indicated that it would reach 3.4%.
On October 29, JP Morgan Chase said that the Israeli economy may contract by 11% on an annual basis in the last three months of this year, with the escalation of the war in the Gaza Strip.
The Israeli economy is entering into an existential war… the labor market is disrupted, and business sectors are in a state of uncertainty.
The Israeli economy was damaged under the impact of the war that broke out on October 7.
The uncertainty about its continuation and the risk of an all-out war in the north with Lebanon affects economic activity and causes multidimensional damage to the economy.
Israeli Finance Minister Bezalel Smoterich estimated the daily cost of the war on the Gaza Strip at about one billion shekels ($266 million).
