Israel’s Billion-Dollar Losses from the Gaza War

Israel has announced that its genocidal war against Gaza has inflicted damages amounting to $67 billion. These losses include $34 billion in direct military losses and $40 billion in public budget damages, marking the largest loss in the history of its occupation.

Over the past year, approximately 60,000 companies in Israel have shut down, representing a 50% increase compared to 2023. Additionally, the number of tourists has decreased by 70%, leading to more than $5 billion in losses for the tourism industry. The construction sector has also faced $4 billion in losses, with over 70 companies closing in this sector.

Data shows that one-third of Israel’s population lives below the poverty line, and one-quarter faces food insecurity.

These figures were revealed just hours before a ceasefire agreement with Gaza was reached.

Israel’s Ministry of Finance announced that since the war with Gaza began on October 7, 2023, the financial costs of its occupation have reached approximately 125 billion shekels ($34.09 billion).

The ministry further stated that by December 2023, Israel faced a budget deficit of 19.2 billion shekels ($5.2 billion), driven by increased spending to finance the wars in Gaza and Lebanon.

These figures represent only the direct costs of the war and exclude broader economic and social impacts affecting various aspects of life in Israel.

In this regard, the Israeli economic newspaper “Calcalist” reported that the total cost of the war against Gaza could reach about 250 billion shekels ($67.57 billion) by the end of 2024.

The newspaper, based on data from the Bank of Israel, estimated that this amount includes “direct security costs, significant civilian expenses, and revenue losses,” emphasizing that these figures do not cover all financial aspects of the war.

“Calcalist” described this situation as evidence of failure in managing the war against Gaza, stating that “a significant increase in Israel’s Ministry of Defense budget” will be needed over the next decade.

The newspaper added that the future budget will include purchases of airplanes, helicopters, and armored vehicles, as well as a large quantity of weapons and ammunition, alongside investments in human resources, including Israeli soldiers themselves.

The newspaper also highlighted that “the failure of Israel’s military in the Gaza war extends beyond financial losses to heavy human casualties, with increasing numbers of deaths and injuries. Families and relatives of the injured continue to suffer from psychological and mental trauma caused by this war.”