featured-image

Following the shock of war, the Israeli economy found itself at a crossroads, as it witnessed a clear slowdown in commercial, investment, and service activity. These challenges did not only impact the economic situation, but posed social and political challenges that obstructed the path of continuous growth that had lasted for almost two years. A report issued by Moody’s rating agency said that the ongoing war costs Israel $269 million daily.

The report was based on a preliminary study that took into account the estimates of the Israeli Ministry of Finance. This means that the war has cost Israel $61.9 billion since its eruption around 230 days ago.



According to data from the Israeli Ministry of Finance, the fiscal deficit rose to 7 percent of GDP in 4 months of the current year, reaching $35.7 billion since April 2023, which is higher than the government’s estimate of 6.6 percent for the entire year of 2024.

It is also an unprecedented number since the global financial crisis in 2008, according to the Ministry of Finance, which indicated that the fiscal deficit in April amounted to $3.16 billion. The war forced the government to increase defense spending significantly, which accounted for about two-thirds of total spending in four months.

In contrast, revenues declined by 2.2 percent, due to a decrease in tax payments. The government plans to raise about $60 billion in debt this year and increase taxes to meet its financial needs.

The average monthly bond sales tripled a.

Back to Fashion Page