Growing economic problems of the Zionist regime due to the continuation of the war in Gaza
Operation Al-Aqsa Storm and the Zionist regime's war against the Gaza Strip have brought various consequences, one of the most important of which is the growing economic problems of this regime.
23 days have passed since the start of the Zionist regime's war against the Gaza Strip. Operation Al-Aqsa Storm and the war against the Gaza Strip began in a situation where the Zionist regime had previously faced many internal problems, including economic ones. That is why the war against Gaza has aggravated the current economic problems of the Zionist regime and will have long-term consequences. According to Israeli sources themselves, in two weeks the economy of this regime suffered losses of almost 5 billion shekels ($2 billion). This figure is considered staggering and high for a small economy like Israel, and will have far-reaching consequences for the regime in the future.
Ha'aretz economics editor David Rosenberg, in a piece published in Foreign Policy magazine, pointing to the crises posed by Operation Al-Aqsa Storm for the regime, wrote: "The call for more than 360,000 reservists to join the army, many of them that can last a long time will disrupt industries where young men make up the majority of their workforce.”
Believing that Israel's exit from the current crisis depends on ending the conflict, he says: "Continued conflict will lead to the fact that many Israeli workers, called to war as reserve forces, will be involved in the war for a long time. In addition, increasing unrest in the Western The Jordan River will also disrupt economic activity and destroy business and consumer confidence."
Another point is that the war against the Gaza Strip dealt a serious blow to the tourism of the Zionist regime, as one of its most important economic sources. According to announced statistics, Israel's tourism revenues last year amounted to more than $5.5 billion, but this year, due to the conflict and, of course, political problems in the occupied territories, they will decline sharply.
In addition, since the beginning of October, the Israeli currency (shekel) has fallen by almost 5%. Forecasts say that Israeli economic growth this year has also fallen from 3% to 2.3%. According to a report published by the Economist magazine, Israel's economy has faced three problems since the outbreak of the war. The first problem is employment. There is no labor force that can be used simultaneously in the economy and in war. Since October 7 this year, Israel's armed forces have mobilized more than 360,000 reserve forces, or 8% of the country's workforce. This conscription was on a larger scale than the wartime conscription in 1973. Most of these reserve forces left their jobs and this problem created a huge hole in the economy. To make matters worse, the recruited forces are among Israel's most productive workers.
The second problem for policymakers was the decline in private consumption. The closure of shops, panic among people who do not want to leave their homes and the decline in tourism demand have become the most important factors in the decline in private consumption in Israel. But the main problem in the Israeli economy was financing the war in such a situation. Supporting war-damaged businesses and households alongside military spending has put Israeli politicians in a difficult situation. Now a significant portion of the financial resources of the Israeli economy must be spent on security issues and its war machine with Hamas.
