The High Cost of War: Why Taking Over Gaza City Could Hurt Israel's Economy

Financial Implications

• Potential Cost: Up to NIS 100 billion
• Percentage of Annual Income: Approximately 5%
• Expert Concern: Israel may struggle to sustain this financial burden long-term

Current War Context

• Duration: Nearly two years
• Opponents: Hamas and other regional groups
• Current War Cost: Around NIS 300 billion
• Resulting Financial Impact:
• Increased borrowing
• Rising national debt

Impact on Daily Life

• Soldiers: Many called to duty, away from jobs for months
• Small Businesses: Struggling due to reduced workforce and financial strain

Immediate Costs of Taking Gaza City

• Estimated Initial Cost: Between NIS 25 billion and NIS 50 billion
• Includes:
• Military expenses
• Relocation of people
• Provision of basic needs (food, water, etc.)

Government Financial Strain

• Potential Actions:
• Raising taxes
• Cutting spending on essential services (schools, hospitals, roads)
• Current Debt: About 70% of the country's annual income
• Annual Debt Repayment: Approximately NIS 60 billion

Additional Concerns

• International Relations:
• Possible reduction in trade
• Decreased foreign investment
• Economic Impact:
• Difficulty in obtaining loans
• Potential increase in emigration
• Economic Recovery:
• Delayed recovery from last year's economic contraction
• Risk of renewed economic shrinkage
• Increased unemployment