How much has Israel’s economy been damaged in Al-Aqsa storm so far?

Fars News Agency International Group – Note; Vahid Samadi.

In order to show very briefly how much the current war of the Zionist regime has affected its economy, it is enough to look at the inflation rate in occupied Palestine, which during this short period of time, It has increased from 3.7% to 5%.

It is important to mention that one of the main pillars of the existence of the Israeli regime is the economy. After the establishment of this regime, one of the attractive reasons and incentives for attracting Jews from all over the world was the economic factor. Therefore, whenever the economic factor is hit in addition to the security factor, in fact one of the pillars of the regime’s existence has been hit, therefore, a serious and urgent solution is needed.

Israel in the first part of the war The current (forty-eight days – before the four-day ceasefire), which very recklessly dropped bombs worth several thousand dollars on the heads of the people of Gaza, organized hundreds of costly flights day and night to attack Gaza, and called more than three hundred thousand security forces, witnessed the pressure It was a severe economy. The regime’s Ministry of Finance announced in October that the daily cost of the war is about 270 million dollars; In order to better understand the meaning of this figure, it should be said that this figure means more than 8 billion dollars per month, while the declared annual budget of the Ministry of War is about 24 billion dollars. This caused the Zionist regime to start revising the 2023 budget; A matter that has itself become a source of internal conflict and is not heard much in the shadow of war news.

Three days ago, Yedioth Aharonot newspaper brought up another number and wrote, Israel, daily 246 million dollars is incurred. The Financial Times also reported that Israel’s budget deficit will triple next year (2024) and reach a figure of around 5-8% of its GDP.

Before entering Regarding the details of some of the costs incurred by Tel Aviv, it should be noted that the damage of this war is divided into two parts, direct and indirect. These costs are so high that apart from the pressure of global public opinion to stop the war, it can be said that the economic factor will also become one of the factors so that the regime leaders cannot pursue the goals announced in Gaza without a time limit because the internal front Israel does not tolerate high human casualties nor prolonged economic losses.

Direct cost of war

The direct cost in the first place includes the heavy cost of war and the Ministry of War. The budget of this ministry is about 24 billion dollars. Tel Aviv-based economic consulting firm Leader Capital Markets reported last week that the cost of the Israeli government’s military operations in the Gaza Strip is likely to reach $48 billion. According to the report of this economic center, probably two-thirds of this cost will be borne by Israel and the remaining one-third by the United States. It is no secret that Israel has been receiving 3.3 billion dollars annually from the United States, which was approved by Congress, and in addition, it receives 500 million dollars for strengthening its missile technology.

Army The regime has about 170,000 active forces, which called up 360,000 reserve forces for the current war. This call left a huge cost on the hands of the Ministry of War. The internal estimate of the regime is 1 billion and 300 million dollars for each month. These costs are so high that Israel recently took out $6 billion in high-interest loans. Therefore, Israel has decided to partially cancel the call for some of these 360 ​​thousand people.

Another direct cost is related to the evacuation of settlements on the southern and northern borders. A figure of about 250,000 people who have been accommodated in government centers and hotels. Every day that is added to the days of war, this cost goes higher and higher.

Another direct cost is the promised financial aid to families and businesses whose businesses Affected by war. Of course, dissatisfaction has increased in this sector because domestic news shows that Netanyahu’s government has not fulfilled its promises in this regard. The situation created in the businesses and the market of the regime is similar to the days of the Corona outbreak, maybe even worse.

Indirect cost of war

But indirect costs include any damage that is caused by the war situation. For example, unemployment has increased and according to the American accreditation organization Standard & Poor’s, unemployment will reach 3.8% by the end of 2023 (that is, in one month) and will increase to 4.5% next year. Right now, the number of people who applied to the National Insurance Organization to receive unemployment insurance includes at least 47,000 employees, and a fifth of the regime’s workers are currently unemployed.

14% of all employees in the regime Zionists are working in fields related to technology. The technology sector is one of the main pillars of Israel’s economy, and global technology companies are also a part of it, for example, Microsoft, Google and Apple have research and development centers in Israel. The pressure has risen to such an extent that Microsoft warned last week that if the war continues, the future of technology in Israel will be in jeopardy. Since last October 7th, this sector has been experiencing conditions far worse than the Corona period.

Another indirect cost includes 360,000 precautionary forces that have been called. On the one hand, the government has incurred a cost of 1.3 billion dollars a month due to the recall, and on the other hand, because each of these people is working in a different department, they have lost their jobs due to the recall, and this has also caused a double cost. Therefore, the Israeli cabinet decided to cancel part of this call. (Now, if a small reference is made to the harmful activity of Hezbollah in the northern borders, the effect of this relatively limited operation of Hezbollah in the northern borders of Palestine will be better understood; on the one hand, it will increase the call and spend more money, and on the other hand, it will keep a third of the armed forces in abeyance. Israel on the northern border and not using it against Gaza).

The stock market of the regime, which caused a loss of about 20 billion dollars in the first one or two days as a result of the events of October 7th, is not experiencing good days, and if this situation continues for a long time, it will not be bearable for it. will not be; It goes without saying that the threats of the Minister of War and Netanyahu himself indicate that the war will resume strongly after the 4-8 day ceasefire. You know that the short and lightning war was and is part of the military doctrine of this regime, but prolonging the war for about 50 days is considered poison for the economy of this regime. It is not that Israel collapses under economic pressure; no No matter how much this regime is under economic pressure, America will compensate a significant part of it from the taxes of the American people. According to the news, America will give about 14 billion dollars to Israel. But the point here is that as much as the costs go up, the budget deficit will increase, and the budget deficit will put additional pressure on the economy and the economic pressure will increase domestic dissatisfaction. The tightening of economic conditions, along with the irreparable security blow of October 7, will definitely affect the migration process, and the more this process is affected, the more its negative economic effects inside Israel will increase.

The leaders of Israel have declared destroying Hamas as their main goal in the war, and in order to escape from internal pressure and to justify this prestige war to some extent, they have also declared the return of the soldiers as one of the main goals. But the result of the 25-day ground war showed that it is a long and difficult road against Israel, and the result is not guaranteed at all. Therefore, the prolongation of the war in the shadow of the non-fulfillment of the goals, it is already clear what it will bring to the economy of this regime.

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