8 out of 11 Articles
Flames and smoke billow during Israeli strikes in Gaza

War with Hamas Costs NIS 1B A Day, Hitting Economy Harder Than Previous Conflicts

The war with the Hamas terror group is costing Israel at least NIS 1 billion ($269 million) per day and is poised to take a bigger toll on the country’s economy than previous conflicts, according to a report by global ratings agency Moody’s based on an initial estimate by the Finance Ministry.

“While the uncertainty remains very high, we believe that the impact on the economy could be more severe than in earlier episodes of military conflict and violence,” Kathrin Muehlbronner, senior vice president at Moody’s, said in a report released late on Monday, November 20.

The total cost of the war is estimated to have a price tag of as much as NIS 150 billion to NIS 200 billion, equal to up to around 10 percent of the gross domestic product, according to a recent report by the Institute for National Security Studies (INSS), cited by Moody’s, which last month put the Israeli government’s A1 credit ratings on review for downgrade.

Further, the economic fallout is becoming increasingly apparent in Israel’s unemployment rates. According to the Central Bureau of Statistics, the jobless rate reached nearly 10% in October, fueled by temporary work losses affecting over 428,000 individuals.

In October, the main unemployment rate remained steady at 3.4%. However, when factoring in the temporary loss of work due to the conflict, the rate reached 9.6%, with 428,400 people jobless compared to 163,600 in September. The employment rate for the same month dipped to 56.5% from 61.1%.

The October 7 attack by Hamas terrorists on Israeli border towns resulted in the mobilization of nearly 400,000 Israelis to reserve duty, and approximately 80,000 were placed on unpaid leave in the aftermath. (TOI /VFI News)