Damage to Israel's economy from the ongoing air confrontation with Iran could exceed 9 billion shekels (about 2.9 billion dollars) a week, the Israeli Finance Ministry reported, quoted by "Reuters".
According to the department's estimates, with the current restrictions imposed by Israel's Home Front Command, economic losses reach about 9.4 billion shekels a week. The measures include restrictions on travel to work, school closures, and mass mobilizations of reservists.
These factors are leading to a severe decline in economic activity, as much of the workforce is engaged in hostilities or unable to reach their workplaces.
The new damage comes against the backdrop of the already significant strain on the Israeli economy following the war in the Gaza Strip. The military operation against Hamas, which began after the 2023 attacks, led to a sharp increase in state defense spending, a massive mobilization of reservists, and a decline in tourism and investment.
According to Israeli economists, the war in Gaza has already cost the country tens of billions of dollars, forcing the government to increase the budget deficit and reallocate significant funds to the army and security.
The escalation of the conflict with Iran further complicates the situation, as prolonged restrictions on economic activity and the mobilization of reservists put pressure on production, services, and domestic consumption. Israeli authorities warn that if military action continues, economic losses could increase significantly.