2023-11-23 06:06:08
The Israeli bank Hapoalim estimated the cost of the ongoing military operation once morest Hamas at 27 billion shekels (6.5 billion euros). Or the equivalent of 1.3% of Israel’s GDP in 2022. Other sources consider this amount underestimated: it will be necessary at least double in view of the damage caused, reconstruction, compensation and aid to the populations the most fragile.
With a defense budget of $15 billion and American aid of $3.8 billion, Israel has the means for war, but “ everything will depend on the distribution of the money », Estimates Hapoalim. Israel can also count on its significant foreign exchange reserves valued at $200 billion. The Central Bank has already released $30 billion to support the shekel and provide liquidity to the government.
The fact remains that the war will weigh heavily on economic activity, which has so far been rather dynamic, with growth of 3.1% in 2023. ” The main sectors affected will be agriculture, important in the south of the country, and obviously tourism. ”, according to Hapoalim’s assessment. The mobilization of 300,000 reservists will also contribute to reducing economic activity.
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