Increasing economic challenges for the Zionist regime following the continuation of the Gaza war

The Al Asqa cyclone and the war of the Zionist administration against the Gaza Strip have had various effects where one of the main effects of the war is increasing economic challenges for the administration.

Oct 31, 2023 - 13:44
Increasing economic challenges for the Zionist regime following the continuation of the Gaza war
Increasing economic challenges for the Zionist regime following the continuation of the Gaza war

25 days have passed now since the Zionist regime launched a war against the Gaza Strip. The storm of Al Aqsa and the war against Gaza started at a time when the Zionist regime before starting the war was facing internal problems including economic problems. The war against Gaza will also exacerbate the regime's current economic problems and have long-term consequences. At the same time, the Israeli media has admitted that the economy of the administration in two weeks has suffered a loss of almost two billion dollars. That level, which is large for a small economy like Israel's, will have irreparable effects on the regime. Al Aqsa storm against the Zionists David Rosenberg, the economic editor of Haaretz newspaper, in his editorial on "Foreign Policies" pointed out the various conflicts that befell the regime due to the Al Aqsa Storm and wrote: The call issued asking the reserve soldiers of the Zionist regime to return to the army ; where most of those soldiers are likely to serve in the army for a long time, it will disrupt industrial activities where most of its workers are young and male.' David Rosenberg says: 'Israel will manage to get out of the current crisis if the fighting continues, and the continuation of the war will make many of the regime's soldiers who have been called up to join the army as reserve forces to fight for a long time.' On the other hand, increasing unrest in the West Bank is also disrupting economic activities and losing business and customer confidence. Haaretz newspaper's economics editor Another point is that, the war against Gaza is a severe blow to the tourism sector of the Zionist regime, which is one of the main sources of its economic income. According to officially announced statistics, Israel's tourism income in the past year of 2022 was more than 5.5 billion dollars; and considering the fighting and of course the political problems in the occupied lands (Israel), the income is expected to decrease in this year 2023. Another point in the field is that, the value of the Shekel, the currency of Israel, has fallen by almost five percent since the beginning of October this year until now. At the same time, the forecast about the prosperity of the Israeli economy this year also shows a decrease in economic growth from 3 percent to 2.3 percent.

The report of the Economist newspaper also explains that the Israeli economy in the face of the ongoing war is now facing three challenges. The first challenge is employment. The manpower needed to simultaneously grow the economy and engage in war does not exist. As of October 17 this year, the Zionist regime has gathered more than 360,000 reserve soldiers or 8 percent of the regime's workforce; the call which is said to be the biggest call ever made surpassing the call for war in 1973. Most of those reserve forces have stopped their work; and this has caused a big crack in the economy of the Zionist regime. What's worse is that the employees are some of the most productive employees of the Israeli government. The second challenge for the administration's policy makers is to reduce private consumption. Closing shops and scaring citizens to leave their homes and weakening the tourism sector are the main reasons for weakening private consumption in occupied lands. However, the last challenge facing the Zionist regime is to secure the funds needed to wage war in this difficult environment. Supporting war-affected businesses and households as well as military spending has left Zionist regime policymakers in a difficult position. Right now, most of Israel's financial and economic resources are forced to be used in security matters and to wage war between it and Hamas.