The Israeli economy is increasingly suffering due to ongoing aggression and blockades on Gaza and Lebanon. The economic impact is accelerating as operations from Lebanon, Iraq, and Yemen inflict more damage daily, causing declines in stock markets, currency value, and credit ratings.

A recent US report highlighted these economic troubles, citing heavy military expenditures and their ripple effects. Israel’s credit rating has dropped, its currency (the shekel) has devalued by 3 percent, and the budget deficit for September exceeded $2.5 billion. The report, published by Forbes, predicts further economic losses due to continued aggression on Gaza and escalations in Lebanon.
The military spending, which has reached $67 billion, is diverting resources from the private sector, leading to increased inflation and a growing deficit, which stood at 8.8 percent by the end of September. Forbes warns that Israel’s financial institutions will struggle to manage these pressures, and this will lead to further crises, especially as military operations continue.

Al Masirah report