A Crumbling Economy: How War Is Bankrupting Israel

Sep 3, 2024 - 13:51

Today, a growing number of analysts are expressing concern that the war might extend beyond Israel to engulf Lebanon and the broader Middle East, with dire and far-reaching ramifications. The Mondoweiss website recently released a report highlighting the potential economic challenges that Israel could encounter as a result of the ongoing war. The report outlines the financial repercussions of the ten-month conflict between Israel and the Palestinian resistance, which has led to the bankruptcy of businesses, a complete halt in sectors like tourism, a 60% drop in Israel's credit rating, and a sharp decrease in foreign investment. A workforce of 300,000 is integral to the stability of Israel's macro-economy. However, a significant portion of the Jews are leaving Israel for good. This trend is primarily due to concerns regarding a looming military confrontation with Iran or Hezbollah. Also, the escalating social unrest in the occupied Palestinian territories, further contributes to this phenomenon. This mass exodus poses a formidable challenge for Israel, as it could trigger an economic downturn and subsequently impact its very political survival.