Economic and Human Costs of Israel’s War on Gaza: A Looming Crisis
The financial, military, and societal toll of the ongoing war, as Israel faces long-term economic pressures.
Watan–Israel has incurred significant economic costs due to its war on the Gaza Strip, with the Bank of Israel estimating total losses to be around 250 billion shekels ($67.57 billion) by the end of 2024. These costs include direct security expenses, civil expenses, and revenue losses that have been severely impacted by the ongoing fighting.
According to the Israeli economic newspaper Calcalist, the financial burden of the war will be long-lasting, as it requires a substantial increase in the defense ministry’s budget over the next ten years to compensate for military failures and improve the capabilities of the Israeli army. The newspaper pointed out that the new budget will include the purchase of more warplanes, helicopters, armored personnel carriers, as well as vast amounts of weapons and ammunition, increasing the economic pressure on the Israeli government.
The losses were not limited to the financial side, as they also extended to the human and social aspects. Reports indicate that the war has left large numbers of casualties, both dead and wounded, within the Israeli military, causing severe psychological and moral damage to the families of soldiers and the injured, some of whom are suffering from long-term mental trauma.
🔴لغم الأرقام لا تكذب.. خسائر اقتصادية ضخمة تكبدتها #إسرائيل مع استمرار الحـ ـ ـرب على #غزة مع فشل جيش الاحتلال في حسم الحـ ـ ـرب👇 pic.twitter.com/RtZ28ZqXkQ
— وطن. يغرد خارج السرب (@watanserb_news) January 12, 2025
On the other hand, the report mentioned that the revenues from natural gas in the Mediterranean, which were supposed to go to the ministries of health and education, will be redirected to the Ministry of Defense to compensate for the military and financial losses caused by the war. This decision reflects the extent of the Israeli economy’s strain, as public resources are being shifted toward military expenses instead of investment in infrastructure and public services.
Future Economic and Political Concerns Observers believe that these figures reveal an impending economic crisis, especially if the war continues without achieving its strategic objectives. The increasing financial pressure may lead to higher taxes and reduced government spending on vital sectors, which could exacerbate public discontent within Israel and prompt the government to reconsider its military and economic strategies in the coming years.
