The economic burden of Israel’s operations in the Gaza Strip increasingly strains the overall development of Israel’s economy and industry, with the Bank of Israel estimating expenditures exceeding 66 billion euros.
According to an analysis by Israeli media, the economic costs of Israel’s war in Gaza have reached approximately 250 billion shekels, or 67.57 billion dollars in 2024, equivalent to 66.29 billion euros.
This estimate has been confirmed by the Bank of Israel and includes direct military expenses, civilian expenditures, and revenue losses, but not the full scope of the financial consequences for the economy and industry. Such expenditures bring a series of economic repercussions in the coming period through additional investments across all economic sectors.
The economic assessments did not account for the burden on the pension system caused by injuries and deaths among Israeli soldiers who are unable to continue their service.
The budget strain has sparked debates within Israel, particularly about the redistribution of gas export revenues from the Mediterranean, which were initially intended for healthcare and education but now appear to have been reallocated for defense.
Meanwhile, a special committee of the economic Nagel Committee has proposed an additional 275 billion shekels (74 billion dollars) for defense over the next decade, with an annual increase of 7 billion dollars.
The committee has proposed strengthening Israel’s air defense systems, including the procurement of additional Iron Dome systems and new laser systems, as well as securing the border with Jordan with a well-fortified barrier, Klix.ba writes.
