Israel Faces Economic Consequences of Its Wars

Israeli Broadcasting Corporation (KAN) reported that the Israeli regime's strikes on Lebanon on Monday, September 23 cost the Zionist state some 650 million shekels (U.S.$173 million). Officials underlined that if the airstrike campaign on Lebanon exceeds 10 days, it would require approval for a budgetary expansion.

Israeli media also quoted a former official from the Shin Bet security service as saying, "The capability of Hezbollah to launch rockets towards central Israel should not be underestimated." The former official added, "What [Hezbollah leader Sayyed Hassan] Nasrallah did today is just a small preview of what he has in store.[...] The moment these interceptors are deployed, the costs skyrocket."

The magazine The Economist highlighted that a full-scale war would severely damage Israeli economic growth, possibly even more than the impact of the Palestinian Resistance's October 7, 2023 operation. According to the magazine, the most alarming scenario today facing Israel is that the war would extend into its key commercial centres, including Tel Aviv. Even a more limited military escalation in the northern regions could push the Israeli economy to the brink, it warned. Military expenditures are expected to rise significantly, placing further strain on the Zionist state's financial resources. Adding to these challenges, Israeli banks are facing a substantial outflow of capital, as investors seek to move their funds abroad, the magazine said.

(Al Mayadeen)

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This article was published in

September 26, 2024

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