Bank of Israel: Gaza War Expenses to Reach $67.6 Billion

Bank of Israel Governor Amir Yaron expected that the war expenses on the Gaza Strip would reach 255 billion shekels ($67.6 billion).

The Israeli Knesset (Parliament) quoted Yaron as telling the Parliamentary Finance Committee that direct war expenses for the years 2023-2025, including compensation and other civilian expenses related to the war, will reach 215 billion shekels.

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He added: "Israel is losing tax revenues worth 40 billion shekels... Expectations for the years 2023-2024 indicate a growth rate of 2% each year."

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“In 2025, the growth rate is expected to reach 5%. This is what was stated in the forecast scenario, which indicates a decline in combat operations (the war on Gaza) during the first quarter of 2024.”

The Bank of Israel estimates indicate that the economy will grow by only 1.5% in 2023, and its data is expected to be released by next month, and with the addition of the natural increase in population, the economy will practically witness zero growth, according to Anadolu Agency.

While Bank of Israel data indicated economic growth in 2024 at 3.4%, which is the same as the IMF’s expectations, post-war expectations indicate growth at 0.4% during the current year.